I might add some additional info - the messages I get are:
The connection to the data source “chs68-50th” could not be established. AND
org.hsqldb.lib.FileSystemRuntimeException: java.io.IOException:
I am moving this version 4 LO database to a new directory on a different computer. I have updated the database entry in options. I have also created a new simple test database in the new code and it seems to work fine. So I suspect that discounts any java issue.