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Is it possible to upgrade plain database to esri SDE geodatabase in ArcGIS 10.0?

I have 1 SQL Server 2008 and 1 Oracle database (did not check which version it is).

I'd like to convert them to geodatabases, first that 'MS SQL Server 2008', then Oracle. So, leave Oracle for a while. My question is about SQL Server.

Database has about 200 tables, each under dbo schema. I used sdeupdate, got: SDE Error(-51) Underlying DBMS error

-51 was since 2002 so I did not even try to dig more.

Let it be underlying.

So, it possible at all with ArcGIS 10.0 to take a simple database and upgrade to geodatabase?

c:\somewhere> sdesetup -o upgrade -d sqlserver -s . -u sa -p SA_PASSWORD -D DATABASE_NAME -N -l "arcsdeserver,100,************,31-dec-2012,******************"

ESRI ArcSDE Server Setup Utility Tue Feb 28 17:51:49 2012
----------------------------------------------------------------
Upgrading ArcSDE schema.....
Successfully upgraded ArcSDE schema.

Upgrading geodatabase schema:
Error: Underlying DBMS error (-51).
       Error upgrading GDB schema.
Geodatabase schema object install not completed.

Seems, it's gonna take some while. Will prepare batch scripts to restore DBs, install profiler (seems it doesn't come bundled with MSSQLSRV2008)...