This basically means exactly what it says.
You have to unset the render target from the device by calling GraphicsDevice.SetRenderTarget(null)
(or setting it to a different render target). Because you can't use it as both a source texture and a destination buffer at the same time.
Keep in mind that, in this version of XNA, there is no ResolveRenderTarget
. Render targets simply are textures.
Note that the tutorial that you are using is pretty terrible. Reading back from a render target like this is extremely slow. Especially seeing as the operations that it is using the render target for (selecting pixels in a transformed region) could easily be done efficiently on the CPU. Consider using this better, official example.