This error is caused by Topaz not being able to upgrade the Database file.
Open the version file in the Topaz Folder with Notepad. (It is a plain text file).
Now edit the version to the following:
1.2.0.0
Delete c:\tmptopaz folder.
Run the rebuild.exe.
Make sure the datatex folder is not read only.
Close and save the file.
Start Topaz, Click on "Abort" to skip all the errors.
Now you should be able to get to your Login screen and login.