The error you are getting is a bug/security issue in the latest MSSQL management program. Click here to see the fix.
After choosing to login with the proper username, password and database name (which you specified in the control panel), please follow the following instructions:
1) Bring Object Explorer Details window by selecting View -> Object Explorer Details in the top menu (or hitting F7)
2) In the Object Explorer Details window click at Databases folder
3) The default column header will consist of 'Name', 'Policy Health State', 'Recovery Model', .etc.
In Object Explorer Details window, right-click on one of the column headers and a list of options will open. Deselect Collation.
4) Refresh Databases folder.
