bibtextexworks
I don't quite know the mechanics behind bibliography and BiBTeX. I am using TeXworks to write a document, I modify the bib file with an external application. When I typeset the document (Ctrl+T), it gives the same error displaying the old version of the line.
I am sure I have changed and saved the file. I fiddle with the application a bit, and typeset again it reloads the newest version.
How do I force TeXworks to reload the fresh version of the bib file?
The \bibitems are in the .bbl file generated by BibTeX. Just run it once and copy them from this file.
If required you can use \nocite{*} in your document to force the citation of all entries of the .bib file.
Here is a step by step description.
Make sure the amstex package is installed in MiKTeX
Open TeXworks and choose the "Preferences" menu
Go to the "Typesetting" tab and this window will appear; click on the "+" button in the lower half
Fill the window as follows
In order to add the lines in the "Arguments" field, click on the "+" button.
Click OK in this window and in the Preferences window.
Choose "amstex" from the drop down menu
Click the "Typeset" button (the green one).
Enjoy AMS-TeX in flamboyant PDF format.
Here's the final picture
Best Answer
It looks like what's happening is that despite "pdfLatex+MakeIndex+BibTeX" being selected, TeXworks only actually does BibTeX if the bibliography file has been edited from within TeXworks. (You could check this by editing your bib file and saving it through TeXworks.)
Like I said in my answer, you can force TeXworks to reload the bibliography file by explicitly running
BibTeXfrom theTypesetmenu.