thanks,
Ramon
Comments: ** Comment from web user: MaikKoster **
So I assume its connecting correctly to the server but for some reason, the operation times out. which is strange, as the default timeout for a sql command is 30 seconds. That should be enough to create a database with millions of records, not just a few tables. What happens if you click on "Evaluate Database"? Does it happen every time you click on "Upgrade Database"? It might be a blocking transaction on the server itself, but that would be very uncommon.
You could also try to specify a different Database name, that doesn't exist yet. It will then try to create the database and run all the necessary scripts (including the one that creates the MDT Database).
Also please have a look on http://localhost/YourFrontEndWebSiteName/Admin/Elmah (adjust the name). It can only be opened locally on the webserver itself and will show you the exceptions that happened in the background. That gives a lot more informaiton on the problem itself.