Exchange 2007 SP1 upgrade to SP2 or SP3 failes. Setup /preparead error

Hello,

Appreciate your help on the below issue, its been haunting me for a couple of weeks so far.

A brief overview of the environment.

• Several AD sites, each having at least one DC
• 2 Hub/CAS + 2 Mailbox servers.
• All DCs are Windows 2008 R2, All FSMO roles are on one DC "DC01"
• Blackberry enteprise server
• Rightfax server (removed connectors via powershell)

Upgrading to exchange SP2

• setup /Prepareschema ---> Successful
• Setup /Preparead --> Failed!

Error from log.

The following 1 error(s) occurred during task execution:
[1] 0.  ErrorRecord: Active Directory operation failed on DC01.server.com. This error is not retriable. Additional information: The parameter is incorrect.
Active directory response: 00000057: LdapErr: DSID-0C090C3E, comment: Error in attribute conversion operation, data 0, v1db1
[1] 0.  ErrorRecord: Microsoft.Exchange.Data.Directory.ADOperationException: Active Directory operation failed on DC01.server.com. This error is not retriable. Additional information: The parameter is incorrect.
Active directory response: 00000057: LdapErr: DSID-0C090C3E, comment: Error in attribute conversion operation, data 0, v1db1 ---> System.DirectoryServices.Protocols.DirectoryOperationException: The requested attribute does not exist.
   at System.DirectoryServices.Protocols.LdapConnection.ConstructResponse(Int32 messageId, LdapOperation operation, ResultAll resultType, TimeSpan requestTimeOut, Boolean exceptionOnTimeOut)
   at System.DirectoryServices.Protocols.LdapConnection.SendRequest(DirectoryRequest request, TimeSpan requestTimeout)
   at Microsoft.Exchange.Data.Directory.PooledLdapConnection.SendRequest(DirectoryRequest request, LdapOperation ldapOperation)
   at Microsoft.Exchange.Data.Directory.ADSession.ExecuteModificationRequest(ADRawEntry entry, DirectoryRequest request, ADObjectId originalId)
   --- End of inner exception stack trace ---
   at Microsoft.Exchange.Data.Directory.ADSession.AnalyzeDirectoryError(PooledLdapConnection connection, DirectoryRequest request, DirectoryException de, Int32 totalRetries, Int32 retriesOnServer)
   at Microsoft.Exchange.Data.Directory.ADSession.ExecuteModificationRequest(ADRawEntry entry, DirectoryRequest request, ADObjectId originalId)
   at Microsoft.Exchange.Data.Directory.ADSession.Save(ADObject instanceToSave, IEnumerable`1 properties)
   at Microsoft.Exchange.Data.Directory.SystemConfiguration.ADSystemConfigurationSession.Microsoft.Exchange.Data.IConfigDataProvider.Save(IConfigurable instance)
   at Microsoft.Exchange.Configuration.Tasks.SetTaskBase`1.InternalProcessRecord()
   at Microsoft.Exchange.Configuration.Tasks.NewTaskBase`1.InternalProcessRecord()
   at Microsoft.Exchange.Configuration.Tasks.NewADTaskBase`1.InternalProcessRecord()
   at Microsoft.Exchange.Management.SystemConfigurationTasks.InstallResourceConfig.InternalProcessRecord()
   at Microsoft.Exchange.Configuration.Tasks.Task.ProcessRecord()
[1] [ERROR] Active Directory operation failed on DC01.server.com. This error is not retriable. Additional information: The parameter is incorrect.
Active directory response: 00000057: LdapErr: DSID-0C090C3E, comment: Error in attribute conversion operation, data 0, v1db1
 [1] [ERROR] The requested attribute does not exist.
 [1] Setup is halting task execution because of one or more errors in a critical task.
 [1] Finished executing component tasks.
 [1] Ending processing.
 [0] The Exchange Server Setup operation did not complete. For more information, visit http://support.microsoft.com and enter the Error ID.
[0] End of Setup

Any idea?