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When trying to create a new geodatabase for ArcSDE in ArcCatalog, the 'New Geodatabase' button is unavailable or grayed out.
The option to create a new geodatabase for ArcSDE Personal or ArcSDE Workgroup is not available when using the ArcView license level.
The ArcEditor or ArcInfo licensing level is required to create, administer, and manage ArcSDE geodatabases.
See the links in the Related Section below for more information.
Contact your ESRI account manager to upgrade your ArcGIS ArcView license to the ArcEditor or ArcInfo level for access to the required functionality.
Contact ESRI Customer Service to receive a new license file or registration code to enable the upgraded license level for use.