Description
When right-clicking on a SQL Server Express database in ArcCatalog, 'New Geodatabase' is grayed out.
Cause
The user is running an ArcView license.
Solution or Workaround
The license level must be set to ArcEditor or ArcInfo to create a new database in SQL Server Express.
- Close all ArcGIS applications.
- Go to Start > All Programs > ArcGIS > Desktop Administrator.
- Select the Software Product folder.
- Check ArcInfo or ArcEditor.