steveWP1234 on "Can’t select database error"

I have, on my home server, installed wordpress 3.4.1 and have iis and PHP working, try to run install.php and get the message "Can’t select database
We were able to connect to the database server (which means your username and password is okay) but not able to select the wordpressblog database.
•Are you sure it exists?
•Does the user WPblog have permission to use the wordpressblog database?
•On some systems the name of your database is prefixed with your username, so it would be like username_wordpressblog. Could that be the problem?
".
I have tried various database names but it just adds it to the error message - "username_myusername_wordpressblog"
Have mysql installed - How can I see /test if wordpressblog (database name)exists?
Does wordpress create the database and its required tables during installation?
help appreciated.
Steve