> I changed the database server from the 2.11 to 1.55
> and now I'm getting a response from the server - I can
> select all of the employees last names.

That is not ok. You tried to use Firebird Embedded and finally landed at
using Firebird Server.

Firebird Embedded can also act as a client library when you connect to
the server, it seems that's what had happened to you. If you want to use
Firebird Server, you'd better use pure-Java connection URL:

jdbc:firebirdsql:localhost/3050:D:/Test1/EMPLOYEE.FDB

But if you use Firebird Embedded, you should be able to get connection
without starting the server at all. Apparently driver tells that it
cannot load the fbembed.dll, which usually happens if it cannot be found
in PATH or the Firebird Embedded does not work properly...

Did you perform all steps (except Step 1, which is not needed) as
written here:

http://www.firebirdsql.org/manual/ufb-cs-embedded.html

in chapter "Embedded Server Deployment"? Note, if you do not copy the
icu*.dll libraries, Firebird Embedded won't initialize. Also if you do
not have MSVCRT8 properly installed (you can install Firebird Server
2.1.x, it will register this runtime if needed), Firebird Embedded won't
initialize...

Roman