Sharepoint Configuration Wizard's "CREATE DATABASE permission denied" Error

When creating a new Sharepoint website with the "Sharepoint Products and Technology Configuration Wizard", you may get the error "CREATE DATABASE permission denied in database 'master'."

You may then recall that earlier in this wizard you were prompted to enter a set of SQL Server login credentials to be used. You may then think that it was because this SQL Server login does not have the permission to create a new database. You give this login all of the SQL Server administrative rights, and you may still get the same error.

Here the problem is that when creating the new database, this Wizard does not use the credential that you provided, instead it uses the Windows login credentials that you used to log into Windows to run the Wizard itself.

So you need to make sure that whatever Windows login that you used to get into Windows to run this Wizard, say "yourdomain\yourlogin", then "yourdomain\yourlogin" must be a valid login for the SQL Server in question as well, and it must have the permission to create a new database. The login that you entered in the Wizard itself is not even used during the creation of this new database.