Annoyingly, PowerShell isn’t supported during the upgrade from Windows Server 2003 to 2008. What’s more, the MicroSoft article that tells you how to uninstall PowerShell from Server 2003 gives you an outdated KB number to uninstall to remove PowerShell.
So, fortunately you can remove PowerShell by simply deleting (or renaming [better]) the C:\Windows\System32\Windows PowerShell directory. Once doing this, you may then proceed with your upgrade to Windows Server 2008, if that’s why you were trying to remove PowerShell.