The core problem is that the instruction of "Install nopCommerce 2.00 to your existing database (1.90)." in the Readme.txt needs to be explained a bit more, as this upgrade is a little more involved than most other upgrades.
I hope this helps!
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SYMPTOM
Running the nopCommerce 2.0 upgrade script file, upgrade.sql, causes multiple errors, starting with:
Msg 208, Level 16, State 1, Line 3
Invalid object name 'Customer'.
CAUSE
The upgrade script is attempting to use database objects that don't exist yet. You must run the "normal" nopCommerce installation process (i.e. what you'd do if installing nopCommerce 2.0 fresh). This installation process creates the new nopCommerce 2.0 database objects.
For example, in nopCommerce 1.9, the products table is named: Nop_Product
In nopCommerce 2.0, the "Nop_" prefix has been removed, so the new products table is named: Product
RESOLUTION
Perform the following instructions to accomplish step 2, "Install nopCommerce 2.00 to your existing database (1.90)." in the Readme.txt
WARNING: Always make a backup of your database BEFORE attempting perform an upgrade!
Note: The following assumes that you're performing the upgrade on a local test machine, running a local copy of IIS (or one of its derivatives) and local SQL Server.
1. Download nopCommerce_2.00_NoSource.rar from http://nopcommerce.codeplex.com/releases/view/69080 and then unzip the files to a new website folder, e.g. ...\Documents\My Web Sites\nop-2.0
2. Run the website at ...\Documents\My Web Sites\nop-2.0 (using Webmatrix is an easy way to do this).
3. When the Installation Page appears, make sure that the "Create Sample Data" check box is NOT selected. Then provide the SQL Server connection info for your EXISTING nopCommerce 1.9 database.
4. After installation has completed, the new website will NOT show any of your old data, such as products. This is because the new nopCommerce 2.0 website is looking in the Products table, not the nop_Products table, which currently is empty.
Now you can follow the remaining steps in the upgrade's Readme.txt file, including successfully running the upgrade.sql script (which will copy data from the 1.9 "Nop_" tables to the new 2.0 tables.)