I recently recieved two warnings in Central Admin in regards to upgrades:
Product / patch installation or server upgrade required
Databases running in compatibility range, upgrade recommended.
I thought this was strange since I just applied the August 2010 Cumulative Hotfixes. After reviewing the details of the issues I realized that the SharePoint Product Configuration wizard needed to be run. The details explain about running psconfig or psconfigUI - don't be alarmed - psconfigUI is just a fancy technical term for the SharePoint Product Configuration wizard. Usually patches and updates run that automatically but I guess I missed the memo that you need to make sure it runs after applying the hotfixes. Anyway, it is an easy fix and I am always confident that the wizard is doing the right thing.