It refers to this line in my script (full script here on DBA):

It refers to this line in my script (full script here on DBA):

EDIT:
Per @gbn's suggestion I ran the version check on both (SELECT @@VERSION, @@SERVERNAME):

EDIT 1:

Per @gbn's suggestion I ran the version check on both (SELECT @@VERSION, @@SERVERNAME):

EDIT 2:

Per @DaniSQL's suggestion I ran SELECT compatibility_level FROM sys.databases WHERE name = 'DATABASE_NAME' and the result was 80 (from both SMSS Express and while RDC'd to the box and connected with non Express SSMS)

EDIT:
Per @gbn's suggestion I ran the version check on both (SELECT @@VERSION, @@SERVERNAME):

Microsoft SQL Server 2005 - 9.00.4035.00 (Intel X86)   
Nov 24 2008 13:01:59   
Copyright (c) 1988-2005 Microsoft Corporation Developer Edition 
on Windows NT 5.2 (Build 3790: Service Pack 2)  

(server name is same -- not posted)