George,
This is the permission problem.
In demo project the access database is used. In order to get updateable query work, ASPNET account (account that is used to execute ASP.NET processes) has to have Write permissions on that folder.
By default it does not, so you need to right-click the folder, go to security tab and add ASPNET account to the list, then grant write permissions to that account (by checking Write checkbox) and click OK.
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