Okay. It probably doesn't help that I use an older version of Windows, but Netscape Navigator should be basically the same if you're using a 9 series (the last and final release was 9.0.0.6).
You say you did find the Application Data folder? Your Netscape 'profile' folder should be in there ..\Application Data\Netscape\Navigator\Profiles\xxxxxxxx.default is usually the folder - where those eight xs are numbers or letters - hopefully that's the only profile you have for Netscape. Look in that folder for a file called hostperm.1 - delete it. I'm almost certain that there is no permissions.sqlite file for Netscape Navigator (there may be other files with the .sqlite extension in there, leave them be).
Some basics here - the (usually) three letters or it may be more or less or it could even be numbers after the . (dot) is called a file extension. This file extension needs to be correct for Windows to have an idea what kind of file it is and for it to work properly - it's almost like names with people where the extension is the family name (and different extensions help Windows know what that 'family' does). To go back to my earlier post (the step 2 part) .. that's why you have to have uncheck "Hide file extensions for known file types" in the same place in Explorer that you used to check "Show hidden files and folders" (Tools->Folder Options...->Viewtab). You can reset back with the Restore Defaults button or however you prefer on that View tab when you're all done with hidden stuff and this particular renaming. To properly make a blank hostperm.1 file you need to completely rename the New Document.txt 'blank' file .. the extension needs to be renamed as well (Windows usually gives you some sort of warning if you do this extension renaming).
That final part about 'priming' the new hostperm.1 file - sometimes SSD still cannot see that nice new file you made (it also can happen with a completely fresh virgin install of a browser where the user has made no rules of the sort that are stored in the hostperm.1 file) and thus you get frustrated because it still won't immunize your browser after all that mucking about. Now it's time to let your browser do a little work. Go to a site that you know needs to have some permission set (like your accepting cookies from it or it may need javascript or .. these are examples of the site-specific rules that more-or-less are what's in hostperm.1). They are different from your usual general settings for cookies, etc. - if you open a working hostperm.1 file with NotePad (actually WordPad for me since it's too large for NotePad to open), you will see that it is a Permission File and shouldn't be manually edited (since it's 'generated' by either you telling the browser what to do in regard to a specific website being able to set cookies, etc or SSD immunizing that browser by changing the hostperm.1). Here's how mine starts
Code:
# Permission File
# This is a generated file! Do not edit.
host image 2 febay.it
host install 2 febay.it
host popup 2 febay.it
host image 2 www.asecurevalue.com
.. and so on (current size is 996,347 bytes).
Sorry it took awhile to get back to you, but dl'ing SSD162 now over dialup and have a bit of time 
Hope the above stuff clarifies things a bit for you and good luck - animate the comets (; 
Won't Immunize Netscape
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hmm, Netscape
