In my presentation on Windows Azure SQL Database and SSIS I show how to create a database using the Azure Portal and using T-SQL from SQL Server Management Studio. Using the portal us about as simple as it gets so I’m not going to go through the steps here. To use T-SQL you have to be connected to the master database and then you can quickly create a new database with the CREATE DATABASE command.
CREATE DATABASE <database_name>
(EDITION = 'Web', MAXSIZE=1GB)
The edition can be either Web or Business and the only difference I am aware of is the maximum database size. The Web edition can only be up to 5GB and a Business edition has a max size of 150GB.

