Sql 2005 Upgrade Problems

Hi,
We are running a test upgrade form sql 2000 standard edition to sql
2005 developer edition. Followed through all the steps and specified
the account(SA priveleges and currently used by the 2000 version) and
is the local admin on the box for the services and the setup seemed to
move fine, except for when it got to the point of installing database
services - This is the error message that I got:
MSSQLServer could not be started. Verify you have sufficient
priveleges to start system services. The was no choice but to hit
cancel and then the set up progressed with a final message of 'SEtup
failed'.
Here is a portion of the error log:
Attempting to recover in-doubt distributed transactions involving
Microsoft Distributed Transaction Coordinator (MS DTC). This is an
informational message only. No user action is required.
Database Mirroring Transport is disabled in the endpoint
configuration.
Starting up database 'master'.
Converting database 'master' from version 589 to the current version
611.
Database 'master' running the upgrade step from version 589 to version
590.
Error: 946, Severity: 14, State: 1.
Cannot open database 'master' version 589. Upgrade the database to the
latest version.
System Task Aggregate global counters produced an error that was not
handled. Major: 9, Minor: 46, Severity:14, State:1
Error: 928, Severity: 20, State: 1.
During upgrade, database raised exception 15151, severity 16, state 1,
address 01C4C50B. Use the exception number to determine the cause.
Error: 15151, Severity: 16, State: 1.
Cannot find the endpoint 'TSQL Local Machine', because it does not
exist or you do not have permission.
Any help would be greatly appreciated
Thanks KR