1. At the login screen, select the 'Connect to a Bug Pad database on SQL Server' option.
2. Click the Options button on the bottom right of the screen. The screen should expand to display details for the SQL Server.
3. Select the 'Create a new database with these details' option.
4. Enter the name of the machine that SQL Server is on in the 'Server' box. If you want to connect to a instance of SQL Server that is not the default instance, enter the instance name after the server name, separated by a backslash, like this: 'Server\Instance'. If you are connecting to the default instance of SQL Server, just enter the Server name.
5. Enter the name of the database you want to create in the 'Database' box.
6. Enter login details for the SQL Server you are connecting to, either Windows Integrated or a user name and password. The user you specify will need to have permissions to create a database on the server. After the database is created, users will not need to have this permission to login.
Good Luck :-) if you still cannot connect, tell me which step does not work and what the error message is if you get one. Bug Pad requires SQL Server 2000 or later. (SQL Server 2005 is fine)