Today I've had this strange message during moving TFS2008 installation to another machine.
The main problem was that source version of TFS was previously migrated from 2005 to 2008 version and Windows SharePoint Services have been updated to the newest version too using this procedure.
I was really amazed when, in the WSS restoration process (on the new machine) I saw the "The specified SPContentDatabase Name=WSS_Content Parent=SPDatabaseServiceInstance has been upgraded to a newer version of SharePoint. Please upgrade this SharePoint application server before attempting to access this object." message.
The solution is to install... Service Pack 1 to the Windows SharePoint Services 3.0.
It look like that in the WSS 2.0 SP3 contains DB objects included in the WSS 3.0 SP1 and without upgrading entire TFS2008 environment, you won't be able to complete the migration process.
I hope it will help someone to save some time.