Can this be used in a light box? So, when a use clicks, say an 'Insert' or 'Edit' a:link for one record, a light box will open with the form / fields inside, where the use can update / edit a record, after submission the light box can be closed and the record will show as updated in the table?

Hello,
Unfortunately currently it is not possible to use Lightbox with the Database Connector and Database Updater. There is an update coming in the near future that will allow you to use them together. Meanwhile you can place the update fields into a region on the page and use the data-show/hide attributes to show it when the insert/edit links are clicked.

Have you a time frame on this?

Unfortunately i cannot provide any estimate time.