I'll add that functionality to the next version of DataAssist, so that you can remove the or die(mysql_error) manually. Unfortunatly Dreamweaver will always add it back when you edit the recordset so you may have to remove it repeatedly.
I have attached the "fix" for this issue. Just unzip and place the .edml file in your configuration/server behavoirs/php_mysql/ directory and it should allow you to remove the die statement and still recognize the recordset. If you have dataassist you can replace the file that is already there.