MSSQL 2008 instance and db not empty message

Installing JIRA 6.4.1 64bit. Target db is MS SQL server 2008 instance xxx. I get the following message from the setup wizard although I point to an empty db just created:

You have specified a database that is not empty, please specify an empty database. If you want to upgrade an existing installation....

Any idea on how to get around this and finish setting up the software?

BTW, I have confirmed the DB server is accessible from installation server–win 2012 R2.

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I found the problem–

The "instance=xxx" was specified with server but it should be with Database Name.

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