The database schema must be updated to match the version of Agile to which you are upgrading. This is an incremental upgrade process. You must migrate the database to Agile 2010 R2 before migrating to Agile Planner 2.3.
Install the Agile Migration Tool for Agile 2010 R1. You can download this utility from the Agile 2010 R1 page at http://support.serena.com/Download/Default.aspx?M=AGILE