Ok, I did not realize this was a TC from your email.
Unfortunately, TC's cannot be upgraded at all: there's a bug in JDE that cannot be worked around. The pre-Unicode binary specs had 2 records per spec and now XML specs only have 1. When you attempt the upgrade, JDE actually correctly converts all the specs to the new format, but then it gets confused looking at the record counts (i.e.: 1 new record per 2 old records) and rolls it all back with that error message.