"Updating Work Item Data has encountered a problem"

If you get an error in Teamprise like "Updating Work Item Data has encountered a problem. Java.sql.SQLException: File input/output error: Unexpected Token:", just clean your local cache. It's probably some kind of synchronization issue with the local cache and TFS server.

On XP the Teamprise local cache data are stored under C:\Documents and Settings\%USERNAME%\Local Settings\Application Data\Teamprise\2.0. For this error you just need to delete the ./db directory. You will have to close Eclipse or Teamprise before doing so.