Hi homerJ,
If you don't have the ALM version you won't be able to see the Lab_Management tab to work with the lab_project. In this case, you need to see the following article on how to get the lab_project viewable in the Site Projects tab alongside the other projects:
http://eyeontesting.com/questions/11355/how-can-i-see-the-lab-project-within-site-admin.html
After you have done this, then try and restore the project, making sure and verify that the project has the correct pass phrasing being used making sure of the following if using SQL server run the following queries on the DB prior to attempting the restore:
USE domain_project_db
GO (This selects the database)
EXEC sp_change_users_login 'Report'
GO (This unlinks the ''td'' user)
EXEC sp_change_users_login 'Update_One', 'td', 'td'
EXEC sp_changedbowner 'sa'
Exec sp_MSforeachtable @command1=''sp_changeobjectowner '?', 'td'''
If this fails again then, you can try the following:
change the HOST_PASSWORD value in LAB_HOSTS table with the one from the dbid.xml file of the lab_project and then perform the restoration and upgrade.
This action can be done by your DBA with an UPDATE query run against that table within the DB.
I hope this helps,
Dan