Need a modified Kernel DVD for the installation on SQL 2008 (see SAP Note 1152240).
And don’t forget to install and patch the Visual Studio C++ Runtime (also described in that note).
I also would recommend to restore the backup and then install SAP NW 7.0 SR3 and use the restored SQL 2008 R2 database.
So the basic steps are:
1. Perform backup and restore to SQL 2008 R2
1.1. Install SQL 2008 with SQL4SAP
1.2. Backup old database
1.3. Restore backup on SQL 2008 R2
2. Install VC runtime on Win 2008 R2
3. Create modified Kernel DVD
4. Create modified Master DVD
5. Perform system copy target installaton with –
Additional sofware –> System copy –> Target system –> Central system –> Based on AS Abap
–> Central installation
and use the SQL 2008 R2 database
Please also check Note 1476928.