EndNote X4 "Could not initialise database error in Windows 7 with Office 2007

Sorry for the late reply, however this issue is usually either caused by permissions for the location where you are trying to create or open a library, or an issue with a running process on the machine. The easiest way to tell is to restart the machine. %90 of the time this will fix the issue. If it does not, try temporarily disabling any anti-virus to see if you continue to have the issue.