If anyone has ever experienced this I’d love to hear from you, the problem occured after a system restore.
Unable to create sub-webs (using the team site template).
When picking a template to apply to the site you get: SQL Server might not be started.
It’s possible to create subwebs through STSADM, but then if you try to delete from the GUI, you get “Cannot Remove Folder “sitename””. This also can be removed from the site with STSADM.
I think it’s actually the “team site” site template because that’s creating lists/libraries, it seems to work fine if you select the blank site.
If you have ever had this and figured a way around it feel free to drop me an email or leave a comment.