SQL database creation fails with error code -2147467259 because the install of SQL Express, as part of the Recovery Manager for AD install, has failed.
"Error - 2147467259: failed to create SQL database: RecoveryManager-Reporting-XXXXXXX, error detail: unknown error."
The issue is related to certain rights and permissions granted to the local administrators group. If these have been altered to tighten security then the installation of SQL Express may fail.
For a resolution to this issue please see the following Microsoft Knowledge Article:
http://support.microsoft.com/kb/2000257
