In Vista environment, when you run Microsoft SQL Server Management Studio Express and try to create a new database on your local instance (MACHINENAME\SQLEXPRESS), you might get the following error:
CREATE DATABASE permission denied in database ‘master’
The reason is; you are connecting to the database using Windows Authentication. If you start Management Studio Express the regular way, the program won’t have any Administrator privileges which are required to be able to create a new database.
You simply have to run Management Studio Express as administrator. Here is a step-by-step guide:
Close Management Studio Express
In the start menu, right-click the shortcut of Management Studio Express and select “Run As Administrator”
If Windows asks if you want to allow the program in admin mode, say “Yes”
Retry creating your database