Why would you delete your database? There is no need to do that for upgrading.
"MSSQL Trying To Create Database"
I have no idea what that means or how the setup page could say that since mojoPortal does NOT create the MS SQL Database, the database must already exist in order for the setup page to work.
The only platform where the database is created automatically if it doesn't already exist is when using SQL CE, there is no code anywhere in mojoPortal that can create a database for any other platform.