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Unable to Open Sqlite3 database (Rails up and Running)

I have the 2nd edition of Rails Up and Running and I am on page 22-23 where there is the series of tasks to populate the database. The Rake task db/migrate runs fine, but when I run the Select statement I get the following error message:

Unable to open database "db/development.sqlite3" unable to open database file

I have checked and the development.sqlite3 file is present in the db folder, and all the permissions seem to be correct. When I use the .databases command, only main shows up on the list.

I am running all of this on my corporate laptop (Windows XP Pro) using the NetBeans IDE. It may be some setting on the machine, but I have been trying with other novice projects to get databases to connect and have been having issues as well.

I am a RoR rookie, so any help would be greatly appreciated.
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