I have the same problem. I have uninstalled and resinstalled VB
2005 Express 3 times. I also tried the command line version of vbupgrade and there I get the message:
Upgrading engine not registered. Please run setup again.
I did this and I also registered all the dll components manually using RegAsm.exe but still nothing.
I have run out of ideas and this particular message is nowhere to be found in microsoft.com or godotnet.com