1. download and install FileZ from here http://nosleepsoftware.sourceforge.net/index.php?page=filez
2. Launch FileZ and tap on view and edit files
3. Open the internal folder and tap pmtracedatabase and put a check mark next to it
4. Tap details
5. Tap on the "Attrs" tab
6. Uncheck the box next to backup
7. Click Save
8. Sync
The pmtracedatabase is a built in ROM file and does not affect the usage of the device. It is a legacy file and is no longer used by the operating system and palm desktop 6.2 lacks the ability to back the file up.
If you ever do a hard reset you will have to reinstall the filez application and remask the file to keep the error from coming back.