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 Snapshot XenServer 5.5 error SR has been upgraded
Solution:

Upgrade the LOCAL STORAGE to SR (Storage Repository) by doing a right-click to Local Storage. Select upgrade the Storage Repository. Now, it will tell you that once you do this, previous version of XenServer would not work with the Local Storage.

After you do this, it will allow you to take your snapshots of your VMs

Tip on how to connect remotely to XenServer Configuration Console from XenCenter