From: Art Frank on
On my SQL Server 2008 system, I just tried to create a new database for my
SharePoint farm config database (WSS 3.0) and I can create it using the
server's collation (SQL_Latin1_General_CP1_CI_AS) but SharePoint doesn't like
that, it wants Latin1_General_CI_AS_KS_WS. So, I dropped the db, and when I
tried recreating it with the collation for SharePoint I got this error:

There is insufficient system memory in resource pool 'internal' to run this
query. CREATE DATABASE failed. The default collation of 'SharePoint_Config'
cannot be set to 'Latin1_General_CI_AS_KS_WS'. The statement has been
terminated. (Microsoft SQL Server, Error: 701)

In researching this problem, it appears that running a database with
collation that is different from the server's collation is not recommended.

Is SQL Server throwing this error to stop me from shooting myself in the
foot? Do I need to create a separate instance of SQL Server that has the
correct collation? Do ALL SharePoint farms have their own SQL Server

Or is there something else going on? Ideally, I want to create this
SharePoint farm database in my existing SQL Server instance. But, if it's
going to cause problems, I'll create a new instance for it.