wordpress issue

Hi,
 
Need some help with on windows server version, We are using controlpanel from www.hostingcontroller.com & it came with wordpress v.2.3.3 which was working fine & now we want to update to v 2.8, we have replaced all files except wp-config.php on the installation path
 
Now when ever i am creating a new blog site it says Information needed such as BLOG TITLE & YOUR E-MAIL, but when i calick next it throws Page not found error, when i access www.domain.com/blog/wp-admin/upgrade.php
 
 
WordPress database error Table 'blog.wp_options' doesn't exist for query SELECT option_id, autoload FROM wp_options WHERE option_name = '_transient_update_core' made by delete_transient, delete_option
 
What is the correct way to upgrade, i've refered UPGRADE STEPS on this site, but it still fails, what am i missing?
What is the good reason for this error?
 
Cheers,
Devang

We are already in process to upgrade the most commonly use click applications in coming build4.

Hosting Controller releases build4 in which following click apps version are upgraded
Wordpress
PhpBB
PHPmyadmin
Joomla

Check the release note detail in http://forum.hostingcontroller.com/tm.aspx?m=21621