Hi All,
I assume you've already solved the issue presented in this thread. However, since it's status is still open, I will share my solution to the same problem.
Trying to install SAP B1 9.1, the same message popped up: "could not create database". I finally found out that the cause of that was the limitation of space on the hard disk where the ERP was being installed.
So, if it ever happens again I suggest you start by looking at the free space left on the hard disk.
Hope it helps.
Regards,
Alejandro Fonseca