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Cannot create databases on the named server.
This error occurs when you are using an old version of SQL Server (such as SQL Server 6.5, 6.0, or 4.2). You must use a more recent version such as SQL Server 7.0 or SQL Server 2000.
Other ResourcesHow to: Create a Database (SQL Server Management Studio)
Help and InformationGetting SQL Server 2005 Assistance