Based on the errors appearing in the localhost* log, I deduce your server installation includes a version of hsqldb.jar which is older (=incompatible) with the version used (in your studio) to create the database included in your application.
Tersus Studio version 1.4.5 and earlier bundle HSQLDB 1.7.3 and create databases of a specific format. Tersus Studio 1.4.6 and up (including the current stable version 2.0.3.1) bundles HSQLDB 2.0, and therefore create databases with a different fomat. If an application developed using an older version is opened by a newer studio, the database will be upgraded automatically the first time it is launched.Note that the automatic upgrade is a studio feature and does not occur with a standalone Tersus server. If you need to upgrade a database manually, you can use the upgrade_hsqldb.bat batch file (found in your servers WEB-INF/db-lib folder).
It seems you'll need to update the hsqldb.jar version on your server (installed as described in http://www.tersus.com/#Id=242 section 1.6). Note that once you do this, you'll need to verify that other applications (if any) installed on the same machine, are also using the updated database format (you can check the version number in the .properties file of each application's database folder).
REgards,
David
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