fatal error while updating on live site HELP !!!!

i have a fatal error while upgrading my site from 7.06 to 7.07 it keeps saying

 why would it say that ...seems weird ....  that i can "live with"  but the bad part is when i overwrote the old files with new my site quit working with the DB error on front page NOT GOOD   ready to pull my hair out .......

not sure if this would cause it or exasperate the situation but i know in my admin backend it keeps saying the version is 7.04 for some reason but i know for a fact it IS 7.06 for sure .... i remember someone telling me how to change the version numbers manually if it didn't update it properly ...where would that be ???? would that cause the problem or issue  and if so where do i change it ...thanks 

It's in one file:

/inc/header.inc.php

and it's in the database:

sys_options -> sys_tmp_version

I'm guessing your problem is in the database part.. but it's very odd that the 7.0.5 and 7.0.6 upgrades didn't change it automatically. Normally the only thing you have to change manually is the version in the header file. But that shouldn't be stopping you from running the upgarde?