Problems upgrading database from 2005 to 2008 R2

I have backed up my databases, uninstalled SQL Server 2005 and installed SQL Server 2008 R2.
Then restored databases into that.
Problem is compatibility level of the databases is still 2005, it won't let me change it to 100 either as a query or in the properties, the highest level available in properties is 90.
I see the server it's connected to is 9.0.5000 which is 2005, so maybe that's why but how on earth can I make the databases version 2008?
I want to do this to take advantage of the 10GB databases limit, as 2005 databases only have a 4GB limit.
Thanks.

summary.txt:
Overall summary:
Final result: Passed
Exit code (Decimal): 0
Exit message: Passed
Start time: 2014-05-11 15:43:44
End time: 2014-05-11 15:49:51
Requested action: Patch
Machine Properties:
Machine name: TSDIALLER
Machine processor count: 2
OS version: Windows Server 2003
OS service pack: Service Pack 2
OS region: United Kingdom
OS language: English (United States)
OS architecture: x86
Process architecture: 32 Bit
OS clustered: No
Product features discovered:
Product Instance Instance ID Feature
Language Edition Version Clustered
Sql Server 2008 R2 Management Tools - Basic
1033 Express Edition 10.50.1617.0 No
Package properties:
Description: SQL Server Database Services 2008 R2
ProductName: SQL2008
Type: RTM
Version: 10
SPLevel: 1
KBArticle: KB2528583
KBArticleHyperlink: http://support.microsoft.com/?kbid=2528583
PatchType: SP
AssociateHotfixBuild: 0
Platform: x86
PatchLevel: 10.51.2500.0
ProductVersion: 10.50.1600.1
GDRReservedRange: 10.0.1000.0:10.0.1099.0;10.0.3000.0:10.0.3099.0
PackageName: SQLServer2008-KB2528583-x86.exe
Installation location: c:\f76288dca3b4da3b29e59ceae4be17c0\x86\setup\
User Input Settings:
ACTION: Patch
ALLINSTANCES: True
CLUSTERPASSIVE: False
CONFIGURATIONFILE:
ENU: False
FARMACCOUNT: <empty>
FARMADMINPORT: 0
FARMPASSWORD: *****
HELP: False
INDICATEPROGRESS: False
INSTANCEID: <empty>
INSTANCENAME: <empty>
PASSPHRASE: *****
QUIET: True
QUIETSIMPLE: False
UIMODE: Normal
X86: False
Rules with failures:
Global rules:
There are no scenario-specific rules.
Rules report file: C:\Program Files\Microsoft SQL Server\100\Setup Bootstrap\Log\20140511_154324\SystemConfigurationCheck_Report.htm
Discovery report:

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