If you encounter below said issue while creating the Database in Microsoft SQL Server, check one possibility about Authentication in SQL. I was facing the same issue & then I tried to connect SQL by SQL Server Authentication, the problem fixed. Previously I connected via Windows Authentication.
TITLE: Microsoft SQL Server Management Studio
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Create failed for Database 'MySQLDatabase'. (Microsoft.SqlServer.Smo)
For help, click: http://go.microsoft.com/fwlink?ProdName=Microsoft+SQL+Server&ProdVer=10.0.1600.22+((SQL_PreRelease).080709-1414+)&EvtSrc=Microsoft.SqlServer.Management.Smo.ExceptionTemplates.FailedOperationExceptionText&EvtID=Create+Database&LinkId=20476
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ADDITIONAL INFORMATION:
An exception occurred while executing a Transact-SQL statement or batch. (Microsoft.SqlServer.ConnectionInfo)
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CREATE DATABASE permission denied in database 'master'. (Microsoft SQL Server, Error: 262)
For help, click: http://go.microsoft.com/fwlink?ProdName=Microsoft+SQL+Server&ProdVer=10.00.1600&EvtSrc=MSSQLServer&EvtID=262&LinkId=20476
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BUTTONS:
OK
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TITLE: Microsoft SQL Server Management Studio
------------------------------
Create failed for Database 'MySQLDatabase'. (Microsoft.SqlServer.Smo)
For help, click: http://go.microsoft.com/fwlink?ProdName=Microsoft+SQL+Server&ProdVer=10.0.1600.22+((SQL_PreRelease).080709-1414+)&EvtSrc=Microsoft.SqlServer.Management.Smo.ExceptionTemplates.FailedOperationExceptionText&EvtID=Create+Database&LinkId=20476
------------------------------
ADDITIONAL INFORMATION:
An exception occurred while executing a Transact-SQL statement or batch. (Microsoft.SqlServer.ConnectionInfo)
------------------------------
CREATE DATABASE permission denied in database 'master'. (Microsoft SQL Server, Error: 262)
For help, click: http://go.microsoft.com/fwlink?ProdName=Microsoft+SQL+Server&ProdVer=10.00.1600&EvtSrc=MSSQLServer&EvtID=262&LinkId=20476
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BUTTONS:
OK
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