Database Error with Lite Installation

I cannot execute report creation. Any effort results in error shown below.

java.lang.RuntimeException
Unable to connect to DB.
Error at http://10.0.1.1/jsonrpc/jsonrpc.js?s=1359651505:461:37

Progres process is running. I used the open source lite version.

Lite version did block websites but no log was created.

Thanks for the help.