Try something different.

In 2012, create a new database, then right-click on it and select Tasks -> Import Data. Walk through the wizard with 2008 as the source and 2012 as the target.

>Yes I agree, and yes the DB still runs. You can note my comments to Dragan. SSMS seems to be pointing to a 2008R2 mdf but I am restoring from a Backup ( xxx.bak ) of the DB. So at this point I am confused as to what exactly is happening here.