This is occurring unfortunately because between 2008 and 2011 the Infragistics2.Documents assembly name was changed twice.  I believe sometime in 2009 it was changed to Infragistics2.WebUI.Documents, and in 11.1 it was changed to Infragistics2.Documents.Reports.  The tool is probably having issue making the change from the 2008 version straight to the 2011 version. To get around it you can either remove the reference and then upgrade, and add the reference back, or change the reference in the project using notepad to be Infragistics2.WebUI.Documents, and then upgrade it.  I'll log an issue for this for further investigation.

After I took a look at the error, i realized that licenses.licx was read only. So I made that as not real only. Now I am getting some different error. I have pasted as I see.

09:14:01: Gathering volume and assembly information.
09:14:02: ProjectFile element: CTLFreightBillProject\CTLFreightBillProject.vbproj is being treated as a proj file.
09:14:02: Analyzing CTLFreightBillProject.vbproj...
09:14:02: The following project needs to have its references updated:
09:14:05: Upgrading Solution CTLFreightBillProject.sln
09:14:05: D:\CTLFreightBillProject\CTLFreightBillProject\Web.config has been backed up.
09:14:05: Replacement for Infragistics2.WebUI.UltraWebTab.v8.1 is Infragistics2.WebUI.UltraWebTab.v11.1.
09:14:05: Replacement for Infragistics2.WebUI.Shared.v8.1 is Infragistics2.WebUI.Shared.v11.1.
09:14:05: Replacement for Infragistics2.WebUI.WebDataInput.v8.1 is Infragistics2.WebUI.WebDataInput.v11.1.
09:14:05: Replacement for Infragistics2.WebUI.WebSchedule.v8.1 is Infragistics2.WebUI.WebSchedule.v11.1.
09:14:05: Replacement for Infragistics2.WebUI.WebScheduleDataProvider.v8.1 is Infragistics2.WebUI.WebScheduleDataProvider.v11.1.
09:14:05: Replacement for Infragistics2.Web.v8.1 is Infragistics2.Web.v11.1.
09:14:05: Replacement for Infragistics2.WebUI.UltraWebNavigator.v8.1 is Infragistics2.WebUI.UltraWebNavigator.v11.1.
09:14:05: Replacement for Infragistics2.WebUI.Misc.v8.1 is Infragistics2.WebUI.Misc.v11.1.
09:14:05: Replacement for Infragistics2.WebUI.UltraWebListbar.v8.1 is Infragistics2.WebUI.UltraWebListbar.v11.1.
09:14:05: Replacement for Infragistics2.WebUI.UltraWebGrid.v8.1 is Infragistics2.WebUI.UltraWebGrid.v11.1.
09:14:05: Replacement for Infragistics2.WebUI.UltraWebGrid.DocumentExport.v8.1 is Infragistics2.WebUI.UltraWebGrid.DocumentExport.v11.1.
09:14:05: No matching assembly located in available assemblies Infragistics2.Documents.v8.1
09:14:05:    at Infragistics.VersionUtilitySupport.Core.ProductAssemblies.AssemblyXmlFile.GetNewAssemblyNameBecauseOfNameChangedBetweenVolumes(String assemblyName, Int32 indexOfVolumePortionOfAssemblyName, XmlNamespaceManager xmlNamespaceManager, Boolean ignoreErrors)
   at Infragistics.VersionUtilitySupport.Core.ProductAssemblies.AssemblyXmlFile.LocateNewAssembliesNodeforCurrentAssembly(String assemblyName)
   at Infragistics.VersionUtilitySupport.Core.File.Types.WebConfigFile.FixAssembly(XmlNode n)
   at Infragistics.VersionUtilitySupport.Core.File.Types.WebConfigFile.UpgradeInfragisticsAssemblyTags()
   at Infragistics.VersionUtilitySupport.Core.File.Types.WebConfigFile.Upgrade(String rootDirectory)
   at Infragistics.VersionUtilitySupport.Core.File.Types.FileBasewithWebConfig.Upgrade(String rootDirectory)
   at Infragistics.VersionUtilitySupport.Core.File.Types.ProjectFile.Upgrade(String rootDirectory)

Please help me out.

Thank you,

Saravanan