So the workspace file is on a network drive? This is probably not a good idea for a few reasons; speed and the possibility of more than one user opening this workspace database at the same time, which it is not designed for.
If you have to store the workspace database on a network drive, check for read/write/create/delete permissions, all of which will be required as sqlite will create temporary files during database transactions.
How are you specifying the workspace file location? UNC path (with leading \\) or through a mapped drive? If the former, try mapping a drive letter to see if that changes things.