All good questions. I believe I upgraded the engine and the tools. I can't post images here very well, so I'm a little challenged. I already had SSMS2k8 installed. I think I just figured out how to attach an image. The two images attached show SSMS and the Programs Utility for the MS Server 2008 server. What else can I show?

Is it possible that SSMS is forcing a compatibility level, or has the upgrade utility done that? I don't need it. My stuff is quite compatible with SS2k8.