Error creating this geodatabase. CREATE DATABASE failed. Some file names listed could not be created

Error Message

The following error message is displayed when creating a geodatabase on a Database Server in ArcCatalog:

Error:   
Error creating this geodatabase

CREATE DATABASE failed. Some file names listed could not be created. Check related errors.

Cause

The database creation process is executed by SQL Server Express. This error often occurs because the account used to run SQL Server Express does not have permissions to the directory specified, for example, C:\ or D:\.

Solution or Workaround

• Locate the account that is being used to run the SQL Server Express service and change permissions on the directory specified.
  1. Open the SQL Server Configuration Manager by navigating to Start > Programs > Microsoft SQL Server 2005 > Configuration Tools > SQL Server Configuration Manager.
  2. Click the SQL Server 2005 Services icon in the left frame of the SQL Server Configuration Manager dialog box.
  3. In the right frame, right-click the SQL Server instance and click Properties.

     Note:
     The default name for the instance is SQL Server(SQLEXPRESS).

  4. Record the account that is specified in the Log On tab.
  5. Close the Properties dialog box.
  6. Close SQL Server Configuration Manager.
  7. Start Windows Explorer and browse to the directory/folder that is for new geodatabases.
  8. Right-click the folder and select Properties.
  9. Click the 'Security' tab.
  10. Ensure that the user recorded previously in step 4 has the permissions Read, Write and Execute.
• Change the account used to start the SQL Server Express instance to Local System.

  Warning:   
  Ensure no one is connected before following these steps.

  1. Open the SQL Server Configuration Manager by navigating to Start > Programs > Microsoft SQL Server 2005 > Configuration Tools > SQL Server Configuration Manager.
  2. Click the SQL Server 2005 Services icon in the left frame of the SQL Server Configuration Manager dialog box.
  3. In the right frame, right-click the SQL Server instance and click Properties.

     Note:
     The default name for the instance is SQL Server(SQLEXPRESS).

  4. On the Log On tab, ensure the Built-in account radio button is selected and select Local System from the drop-down menu.

     Note:
     ESRI installation documentation recommends that the Local System account be used to ensure system-wide permissions, however another account may be specified here if it has permissions to the necessary data directories.

  5. Click OK to change the log on account.
  6. A message displays indicating the service is required to restart. Click Yes to proceed with the account change.

     Warning:   
     Any users connected are disconnected and changes lost.

  7. Once the instance state has returned to Running, close the SQL Server Configuration Manager.