More information: apparently restore_database can attempt to create a library with a path longer than the allowed maximum. This can happen on windows machines where the path to the temp folder is very long, perhaps caused by a very long user name. This problem has been fixed for the next release.
It isn't clear to me if this is the problem you are facing, and if so how to work around this problem in the short term. Probably the best approach is to ask calibre to "open an existing library at a new location" using the switch/create library (menu on the library toolbutton), since the library is probably still good.
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