Can’t successfully run Sharepoint Foundation 2010 first time configuration

I'm trying to run the non-GUI version of configuration wizard using power shell because I would like to set config and admin database names. GUI wizard doesn't give you all possible options for configuration (but even though it doesn't do it either).

I run this command:

New-SPConfigurationDatabase
    -DatabaseName "Sharepoint2010Config"
    -DatabaseServer "developer.mydomain.pri"
    -AdministrationContentDatabaseName "Sharepoint2010Admin"
    -DatabaseCredentials (Get-Credential)
    -Passphrase (ConvertTo-SecureString "%h4r3p0int" -AsPlainText -Force)

Of course all these are in the same line. I've broken them down into separate lines to make it easier to read. When I run this command I get this error:

New-SPConfigurationDatabase : Cannot connect to database master at SQL server a
t developer.mydomain.pri. The database might not exist, or the current user does
not have permission to connect to it.
At line:1 char:28
+ New-SPConfigurationDatabase <<<<  -DatabaseName "Sharepoint2010Config" -Datab
aseServer "developer.mydomain.pri" -AdministrationContentDatabaseName "Sharepoint
2010Admin" -DatabaseCredentials (Get-Credential) -Passphrase (ConvertTo-SecureS
tring "%h4r3p0int" -AsPlainText -Force)
    + CategoryInfo          : InvalidData: (Microsoft.Share...urationDatabase:
   SPCmdletNewSPConfigurationDatabase) [New-SPConfigurationDatabase], SPExcep
  tion
    + FullyQualifiedErrorId : Microsoft.SharePoint.PowerShell.SPCmdletNewSPCon
   figurationDatabase

I created two domain accounts and haven't added them to any group:

• SPF_DATABASE – database account
• SPF_ADMIN – farm account

I'm running powershell console as domain administrator. I've tried to run SQL Management studio as domain admin and created a dummy database and it worked without a problem.

I'm running:

• Windows 7 x64 on the machine where Sharepoint Foundation 2010 should be installed and also has preinstalled SQL Server 2008 R2 database
• Windows Server 2008 R2 Server Core is my domain controller that just serves domain features and nothing else

I've installed Sharepoint according to MS guides http://msdn.microsoft.com/en-us/library/ee554869%28office.14%29.aspx installing all additional patches that are related to my configuration.

Any ideas what should I do to make it work?