I'm also getting an error message when trying to setup a calibre library:
ERROR: Bad database location: Bad database location u'C:/Documents and Settings/Owner/My Documents'. calibre will now quit.
Traceback (most recent call last):
File "site-packages\calibre\gui2\main.py", line 191, in initialize_db_stage2
File "site-packages\calibre\library\database2.py", line 154, in __init__
File "site-packages\calibre\library\database2.py", line 124, in connect
WindowsError: [Error 32] The process cannot access the file because it is being used by another process: u'C:/Documents and Settings/Owner/My Documents\\metadata.db'
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