restore QBB file in quickbooks pro 2007

I just inherited the accounting files for a non profit.

The files came with quickbooks pro 2004 and a QBB file.

I installed QB pro and did an update. Rebooted and tried an update again and it says there is nothing more to be done

I then tried to restore the qbb file.

If i leave the QBB file on a flash drive, I am prompted over and over to 'please insert disk 1 in drive g: and click ok". If I copy the QBB file to my hard drive, when I click on restore, nothing at all seems to happen.

I even tried creating a company, doing a backup and then copying my backup file on top of the one created by quick books and then doing a restore.

Is it possible that the previous treasurer had upgraded quickbooks? Would there be a way for me to get that update also?