Where to start New Project:
Windows Azure Tools: Failed to initialize Development Storage service. Unable to start Development Storage. Failed to start Development Storage: the SQL Server instance ‘localhostSQLExpress’ could not be found. Please configure the SQL Server instance for Development Storage using the ‘DSInit’ utility in the Windows Azure SDK.
Moved to my local instace:
Copy and paste this into a command window. [Start->run] Type CMD in run then OK.
“C:Program FilesWindows Azure SDKv1.2bindevstoreDSInit.exe” /sqlInstance:.