You can check out this blog post. It had solved my problem.
http://dotnetguts.blogspot.com/2010/06/restore-failed-for-server-restore.html
Select @@Version
It had given me following output Microsoft SQL Server
2005 – 9.00.4053.00 (Intel X86) May 26 2009 14:24:20 Copyright (c)
1988-2005 Microsoft Corporation Express Edition on Windows NT 6.0
(Build 6002: Service Pack 2)
You will need to re-install to a new named instance to ensure that you are using the new SQL Server version.