Steps:
1. Create an empty database. In our case we created a SQL database
TESTC_db using SQL Server Enterprise Manager
2. Add necessary user access to it
3. In clearquest designer create a new schema. Choose the schema on
which you want to base your new schema. Give the schema name and the
comments when asked
4. Click on Database -> new Database to create new user data base
associate with this schema
5. Provide the logical name for the database
6. Add the database server information and the name of the empty
database that we created before
7. Select the time for connection time out.
8. Choose the schema (testSchema in our case) to associate this
database with the schema
9. Click on Finish once it is done.