When you try to add a new company or restore a backup, you may receive this error.
There are 2 possible ways to solve this problem:
Solution 1: If you are using SQL Server 2000 (MSDE Installation), upgrade to SQL Server 2005
Solution 2: Replace the default company file with a compatible one. To do this, follow these steps:
If you have Canadian version of Clarity or Platinum :
Download the file AKMNewCompany.cbk from this link and copy it to "C:\Program Files\Common Files\AK Microsystems\MSDE_AKM" folder. Overwrite the file that is already in "C:\Program Files\Common Files\AK Microsystems\MSDE_AKM".
If you have US version of Clarity or Platinum:
Download the file AKMNewCompany.cbk from this link and copy it to "C:\Program Files\Common Files\AK Microsystems\MSDE_AKM" folder. Overwrite the file that is already in "C:\Program Files\Common Files\AK Microsystems\MSDE_AKM".
Repeat the above step in every workstation and server you have.
Important Note: On your server machine, following this document will help if you didn't install SQL Instance through the Paymate's SQL installer. If you installed the SQL instance by yourself, it is mandatory to follow this document.
Now, you can try creating a new company or restoring your backup to see if the error is gone or not.