This one got me and took a fair while to figure out, so I thought I'd post about it.
I was attempting to create a new Survey Database, and kept getting an error "The survey database does not exist and could not be recreated", with a message that "Format of the initialization string does not conform to specification starting at index 58."
I finally tracked the problem down to an apostrophe in the name of one of the folders in my Working Folder path. This was not a problem with C3D 2010 and earlier, but is evidently a problem starting with C3D 2011 (and it may only affect the 64-bit version, I don't have a 32-bit version handy to test). Renaming the folder, so that there was no longer an apostrophe in the folder name, solved the issue.