You have Development version installed, this version isn't upgradable. If you have no many changes on your site it's better to start from the scratch and install official release version downloaded from here:
I don't have a lot of work done to it but do have some customizations. I have changed the name from dev8 to rc3 in the said files and did the upgrade to rc4. Only problem is I cannot update the apps because it says 94% too many files have been changed
Guess I will have to start over. Thanks for the info.
After reinstalling in a new database and all new file upload, the installation is once again successful but the settings aren't keeping and same message for app market. Think I will try installing an older RC and start from there. I didnt have this problem before with the dev version