As SQL Azure CTP is released I have included here step by step guide for how to configure the CTP.
For pricing and introduction please read SQLAuthority News – SQL Azure – Microsoft SQL Data Services – Introduction and Pricing
First it has to be configured online at https://sql.azure.com/
Login using your Live ID
Type in invitation code received from Microsoft for CTP. You can request one for your self here.
Accept the TOU.
Once logged it you will have to create server username and password.
Click on my project and it will provide you details about your servername where your data is going to be stored in Azure.
Currently default database is master database. Click on ‘Create Database’ button to create new user defined database.
After please switch to Firewall Settings tab and click on checkbox “Allow Microsoft Services Access to this server”.
Select the first rule and click on “Edit Rule”. Che the value of to IP range to either your static IP only for security purpose. If due to any reason, you want to leave it open so you can connect to your Azure from any where keep the From IP to 0.0.0.0 and change the to IP to 255.255.255.255.
After the change the settings should look like following image.
Now the next step is to connect to SQL Azure from SQL Server Management Studio. When you open SQL Server Management Studio, it opens up the connection window. CLOSE IT!
Now click on New Query.
Once click on new query enter username and password as well the servername noted earlier and click on connect. It should connect fine and new query window with master as default database should be displayed. You can start writing any query in New Query Window and result will be visible in Result Window.
Reference : Pinal Dave (http://blog.SQLAuthority.com)