The connection URI looks wrong.  I think it should be:
sqlobject.dburi="sqlite:///C|/devTesting/data/data.db"

Try that and report back what happens.

Here is a reference to an earlier thread that described the correct
connection string formats (there are a few):
http://groups.google.com/group/turbogears/browse_thread/thread/d1ffcb706cde2d25/81d7a8f6adc3921c?q=sdelatorre&rnum=6

Thanks,

Sean

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