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NetFlow 3.1 failed upgrade

Attempted to upgrade to 3.1 from 3.0 and received the following message -

"The current user has not been assigned a valid default database.  Use sql server management tools to create a new database and then assiging it as the default database for the current user"

The current logged in user in fact has been assigned a default database - NetPerfMon and has all necessary permissions.

Clicking OK to close the error leaves you at the "Updating Orion database.  Processing NetFlowTrafficAnalysis.DBStrcuture file..." indefinitely.

Any reasons why this would happen?