Error: 'Create/Alter database failed because the resulting cumulative database size would exceed you (NETIQKB37632)

fact
VigilEnt Security Manager 3.x

symptom
Error: 'Create/Alter database failed because the resulting cumulative database size would exceed your licensed limit of 2048MB per database' appears in the event log.

symptom
VSM login hangs with a message 'Logging into Core Services'

cause
The database is too full.  There is a 2 Gig limit on the size of the database when using MSDE.

fix
Upgrade MSDE to Microsoft SQL Server.

Formerly known as NETIQKB37632