Hi Victoria,
Thanks for your reply. Here's what I just tried: in My Pictures I opened the 1.x catalog folder (which shows 5MB of data remaining, down from 35 before the initial upgrade to 2.1) and LR asked me to upgrade the catalog for use with LR2. It chose Lightroom2 Catalog-2lrcat for the upgrade destination. I did that, opened LR 2.1 with that new catalog and there were no images showing.
Do I need to reimport from the hard drive all my images into the new catalog (Catalog-2)? Or, rather than choosing Catalog-2 as the upgrade destination should I choose the LR2 catalog that was created when I first upgraded?
As I mentioned earlier after the "failed" attempt to fully upgrade to 2.1 I imported the remaining images into 2.1 from the hard drive. The images that I manually imported have their adjustments but have lost their flags and history. I've also lost my collections. Perhaps this is what is remaining in the 1.x catalog?