The issue is you have reach the max size NV1 database can grow, which is 524mb. In order to convert to NewViews 2 you must have some memory to work with, around 500mb. Which means you have to get rid of a few hundred transactions. A suggestion of records you can get rid of are old payroll records, but before getting rid of any transactions it’s a good idea to backup your database. After deleting transactions you must reorganize your books in order to shrink the size. Once you bring down the size of your books you will be able to convert the database to NewViews 2.
As a reminder do not purge your books, its better just to delete a few hundred transactions.