To create SQL database through HC:
Login into control panel as host admin.
Click on the SQL Server option, present in left frame, new contents will be loaded into right frame.
Click on Add button, this will show you a Java Script dialog prompting for New SQL Server Database Name. Enter the new database name in this dialog and click Ok.
You will be prompted with a new dialog, in this dialog enter the password for the default user of the newly created database. HC will create a user with the same name of the database and will set the password you entered in this dialog. Click Ok after entering the password.
The new database will be created in MS SQL if no error occurred.
Only databases created with HC will be backup and restored through HC SQL Server Manager.