You could check the ODBC connection information and which driver you are using in the datasource dialog, especially if using Windows 7. Failing that contact customer support.
just like what robert have explained, it seems a odbc driver issue on Windows X64. You may try to first delete the dsn in control panel and run %windir%\syswow64\odbcad32.exe to config it again.
Once you made sure the drivers for ODBC are installed on your Windows Operating System, follow PADS ES Evaluation Guide instructions in Lesson 4 Appendix on page 48 to properly configure ODBC database DxDatabook will use.
Thanks everyone for your help, deleting and re-initializing the database in windows worked, and everything is moving along now.