Error: CREATE DATABASE failed. Some file names listed could not be created. Check related errors. (4224859)

LiteSpeed Error:
CREATE DATABASE failed. Some file names listed could not be created. Check related errors. during install or upgrade

Microsoft SQL Server 2005 error:
Create failed for Database 'LiteSpeedLocal'.  (Microsoft.SqlServer.Smo)
ADDITIONAL INFORMATION:
An exception occurred while executing a Transact-SQL statement or batch. (Microsoft.SqlServer.ConnectionInfo)
CREATE DATABASE failed. Some file names listed could not be created. Check related errors.
Cannot create file 'C:\Program Files\Microsoft SQL Server\MSSQL.1\MSSQL\DATA\LiteSpeedLocal.mdf' because it already exists. Change the file path or the file name, and retry the operation. (Microsoft SQL Server, Error: 1802)