Windows Azure Tools - Development Storage Init Failure - RESOLVED!!!11111!

Failed to create database 'DevelopmentStorageDb20090919' : Instance failure.

So, I have resorted to posting here and appreciate anyone's comments and suggestions on how to resolve the issue in the screen capture above. I was able to work thru one issue by enabling the Named Pipes and TCP/IP in SQL Server Network Configuration.

Also, I am having no issue connecting using windows auth or the sa account thru sqlcmd. Secondly, I am running the Azure SDK Command Prompt as an administrator.

Little background: I did not install SQL 2008 Express at the time of installing Visual Studio 2010. I installed a full version of SQL 2008 and SP1 after installing VS2010.

Thanks in advance!

UPDATE - Issue is Resolved.

Things That Go Fail

1. Me, Mongo.End of story.

I had epic failure and some code emo. It turns out that it was in my DSINIT command. According to, About Development Storage, it is not necessary to supply the ".\" in your instance name. Simply: dsinit /sqlinstance:SQL2008 or whatever your instance name will suffice.

This is proper syntax when specifying a SQL Server 2008 instance and NOT a SQL Server 2008 Express instance.

Thanks to the SQLAzure team and Steve Marx for guidance!