SQL Data BAse Restore Error - System.Data.SqlClient.SqlError: The database was backed up on a server running version 10.50.1600. That version is incompatible with this server, which is running version 10.00.2531. Either restore the database on a server that supports the backup, or use a backup that is compatible with this server. (Microsoft.SqlServer.Smo)

To Resolve This Error >>>

1. Install an instance of SQL 2008 R2 on one machine and SQL 2008 on another 
2. Open SQL Server Management Studio R2
3. Select your source Database
4. Select Tasks>Generate Scripts.
5. Select 'Script entire database and all database objects', press 'Next'
6. Select 'Save to File' and click on the 'Advanced' button
7. Select 'Script for Server Version' and select the version you want: 200/2005/2008
8. Select 'Type of data to Script' and select Schema/Data/both 
9. Click 'OK',Next and do it!
10. Copy the resulting file to the target machine with SQL 2008 [or whatever]
11. Log onto your SQL Management Studio and open the copied .sql file... be aware that there may be limitations on the file size.
    There may also be issues with the order that the .SQL file inserts the data into the target database and if there are FK constraints in place, this could be an issue.... simply re-order the insert lists.
12. Once the .sql file is organised, parse it [just to sure], and then execute.