arcgis 10.0 - Cause of selected [ArcSDE 10] feature dataset does not contain any feature classes which can participate in topology?

When trying to create a topology for a polygon feature class in ArcSDE 10. I right click the feature dataset that the feature class resides and try to create a new topology. I get an error saying, "The selected feature dataset does not contain any feature classes which can participate in a topology".

The feature class I am targeting has a z value.

Would this be the culprit?