Love the guidance from ALM Rangers on upgrading - http://vsarupgradeguide.codeplex.com/ but as of today, you need to insure you have SP2 for SQL server. The documentation states that only SP1 is required (pg. 35).
The error TF400933 stated that we did not meet the minimum requirements of Service Pack 1, Cumulative Update 1. Turns out that a "SQL Server 2008 R2 SP2" is now available which looks like it has all of that and more - so we are going large with SP2 instead.
