I believe the answer is in the error message, and BOL refers:
ALTER AUTHORIZATION can be used to change the ownership of any entity that has an owner. Ownership of database-contained entities can be transferred to any database-level principal. Ownership of server-level entities can be transferred only to server-level principals.
Cannot change the owner of system databases master, model, temp, the resource database, or a database that is used as a distribution database.
For more information on changing database owner refer to SQL 2005 Books online.
Satya SKJ
Moderator
http://www.SQL-Server-Performance.Com/forum
This posting is provided “AS IS” with no rights for the sake of knowledge sharing.
-
Satya S K J 
Knowledge is Power, you will gain by sharing it.
SSQA.net - Invisible contributions to the users & visible success in SQL Community.