My Server Instance Version is 9.x when it should be 10.x

I recently installed Sql Server Express 2008 and all of my tools are running version 10.x, but my server instance is still 9.x.

 

This is causing problems obviously when i’m using an older version of sql server for the server, but my tools are trying to use a higher version.

 

I’ve ran the Sql Server Express 2008 install and the R2 install but my server instance isn’t updating.

 

You have to upgrade the SQL Server Database Engine.Just installation of SQL Server 2008 or R2 will not upgrade the existing SQL Server instances.Please refer How to: Upgrade to SQL Server 2008 R2 (Setup)