Installed Versios:

Jazz Foundation - Jazz Team Server 1.0.0.1 (I20090914-1300)
Rational Quality Manager 2.0.0.1 iFix 5 (I20100328_0509)

I changed the JDBC Location to E: from C:. When I restarted the server I am getting following error messages.

com.ibm.team.repository.common.TeamRepositoryException: Failed to start database 'c:\program files\IBM\RQM20\server\repositoryDB\',

Error: CRJAZ1092I

I tried running repotool and got following error there as well.

CRJAZ0503I Failed to connect to the database: "Failed to start database 'c:\prog
ram files\IBM\RQM20\server\repositoryDB\', see the next exception for details."
Db Name/Location: "c:\program files\IBM\RQM20\server\repositoryDB\"
java.sql.SQLException: Recovery failed unexpected problem log record is Not firs
t but transaction is not in transaction table : 38491178.

I have tired restoring the database but no luck their as well.

Thanks a lot for helping me with this issue.

In the error the server is looking for the database in the default location for a derby database. If your database isn't derby, I would check to teamserver.properties file to make sure that the database properties are correct and that the environment variable for the jdbc driver location is correct.