This is a common issue usually caused when the pervasive has stopped running.

1.  Is the Pervasive Engine Running?
1.1.  Bottom right hand corner where the time is displayed, there should be an Icon called Pervasive database pre-load; right click on it.
1.2.  Select the option Stop Engine and Exit.
1.3.  Goto Start -> All programs -> Pervasive -> Engines -> Start Engines
1.4. Give it a couple of seconds and try starting pastel again

2.  Are there conflicting versions of Pervasive installed?

2.1.  Bottom right hand corner where the time is displayed, there should be an Icon called Pervasive database pre-load; right click on it.
2.2.  Select the option Stop Engine and Exit.
2.3.  Check  to  see which  version  of Pervasive  you  are  running  by  following steps 1 and 2 above and select the option ABOUT.
 
Always make sure that you have the same version of Pervasive installed and
running on all machines by doing the steps above.
 
3.  Re-installing Pervasive
 
Goto start -> programs and launch the Pervasive System Analyzer.
-  On  the  welcome  screen  click  next,  and  then  select  the  3rd option, Delete Components/Archives.
-  Select  Local  Machine,  and  then  both  the  options  on  the  next screen, followed by Yes to delete all.

Insert the Pastel CD and click on pervasive -> workgroup
- Install pervasive
- Restart the machine and try going into Pastel