While using the Titanium.Database.install on the simulator it is supposed to copy the database file to the /database directory under the application root folder, however it makes only a symbolic link between the file that is under /database and the one that was in /Resources.
The issue appears only on Simulator.
1. Run the sample code with the sample database (db file attached)
2. Go to the application folder under simulator, the path should look similar: /Users/dawconsdwitservices/Library/Application Support/iPhone Simulator/5.0/Applications/D30F4B39-8A41-4B7F-A271-4EAF69AFDFC9/Library/Application Support/database . Take a look that the myDB.db file which is only a link to the original database file that is under /Resources folder.