1) To create database - using TSQL
http://msdn.microsoft.com/library/de...reate_1up1.asp
You can use Enterprise manager to open the database even to create that.
Enterprise Manager(EM)--> expand your "Server" --> expand "Database", you will find your database there(If created). Else right click and click "New database"... and proceed from there.
2) It depends up on your requirements and limitations to go with ACCESS or SQL Server. It is your call anyways.
for connection strings you can check
http://www.connectionstrings.com
Hope that helps
Cheers!
-Vijay G