Running DSINIT From the Command Line Returns an Error
Updated: November 11, 2011
Applies to: Windows Azure SDK 1.0 and later
Cause: When running SQL Express 2008 as the basis for storage emulator, you must explicitly add the user to the sysadmin group even if the user belongs to a Windows Administrator group.
Resolution: Add the user to the sysadmin group. To add the user to the sysadmin group you can use the script found here http://archive.msdn.microsoft.com/addselftosqlsysadmin/.