Background:

I'm trying to get the Live Demos of Telerik's Rad Controls for ASP.NET AJAX working on my local machine in IIS 7. I'm getting an error when I view the ComboBox demo.

Error I get:

Server Error in '/' Application …. CREATE DATABASE permission denied in database 'master'. An attempt to attach an auto-named database for file C:\Users\MacGyver\MyDocuments\Visual Studio 2008\Projects\TelerikDemos\Telerik\RadControls for ASP.NET AJAX Q2 2011\Live Demos\App_Data\Northwind.mdf failed. A database with the same name exists, or specified file cannot be opened, or it is located on UNC share.

Same error is here:
(search for "THE SOLUTION IS HERE" .. half way down in huge font)

http://social.msdn.microsoft.com/forums/en-US/sqlexpress/thread/6dfdcc22-7a81-4e8f-a947-c1ce6982d4b3/

I'm on Windows 7.. slightly different clicks, but same problem I'm guessing. I get to the "Advanced Security Settings for App_Data" window, and I have two check boxes. Initially, the "Include inheritable permissions from this object's parent" (box 1) box is checked. But the "Replace all child object permissions with inheritable permissions from this object" (box 2) is unchecked. When I try checking box 2, and click "Apply", it doesn't stay checked. Why would this be?

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9/9/2011 update @ 9:19am

Here are my connection strings:

<connectionStrings>
<add name="NorthwindConnectionString" connectionString="Data Source=.\SQLEXPRESS;AttachDbFilename=|DataDirectory|Northwind.mdf;Integrated Security=True;User Instance=False" providerName="System.Data.SqlClient" />
    <add name="TelerikConnectionString" connectionString="Data Source=.\SQLEXPRESS;AttachDbFilename=|DataDirectory|Telerik.mdf;Integrated Security=True;User Instance=False" providerName="System.Data.SqlClient" />
    <add name="NorthwindConnectionString35" connectionString="Data Source=.\SQLEXPRESS;AttachDbFilename=|DataDirectory|Northwind.mdf;Integrated Security=True;User Instance=False" providerName="System.Data.SqlClient" />
    <add name="TelerikConnectionString35" connectionString="Data Source=.\SQLEXPRESS;AttachDbFilename=|DataDirectory|Telerik.mdf;Integrated Security=True;User Instance=False" providerName="System.Data.SqlClient" />
    <add name="NorthwindEntities" connectionString="metadata=res://*;provider=System.Data.SqlClient;provider connection string=&quot;Data Source=.\SQLEXPRESS;AttachDbFilename=|DataDirectory|\Northwind.mdf;Integrated Security=True;User Instance=False;MultipleActiveResultSets=True&quot;" providerName="System.Data.EntityClient" />
    <add name="TelerikEntities" connectionString="metadata=res://*;provider=System.Data.SqlClient;provider connection string=&quot;Data Source=.\SQLEXPRESS;AttachDbFilename=|DataDirectory|\Telerik.mdf;Integrated Security=True;User Instance=False;MultipleActiveResultSets=True&quot;" providerName="System.Data.EntityClient" />
    <add name="QSFRatingsConnectionString" connectionString="Data Source=.\SQLEXPRESS;AttachDbFilename=|DataDirectory|QSFRatings.mdf;Integrated Security=True;User Instance=False" providerName="System.Data.SqlClient" />
    <add name="SelfReferencingDbConnectionString" connectionString="Data Source=.\SQLEXPRESS;AttachDbFilename=|DataDirectory|TelerikSelfReferencingDb.mdf;Integrated Security=True;User Instance=False" providerName="System.Data.SqlClient" />
</connectionStrings>

Here is a screen shot of the files in App_Data: