Thanks for the reply.
I am aware of this behavior of the Emulator. But I am testing on Real device, not an emulator and I am not restarting the device.
I get this problem only when I rebuild my project and deploy it to device for debug.
If I do not Rebuild, I can debug the application any number of times without any problem.
When I Rebuild and deploy the application , Device takes little more time to launch the application every time compared to non-rebuild version and at that time, It creates new Database.
I suspect this is the behavior of the Isolated Storage, but was not able to get confirmation from any reliable source.
I just wanted to find out where the problem lies. Is it with the database or the Isolated Storage? Till now I have not got any help on this behavior. The behavior is pretty consistent.
Are you aware of any such problems?
Please post if you come to know of anything .