"CREATE DATABASE" command?

Ok, just started studying for 70-431. Trying to create a test database via command line as described in chapter 2. The "CREATE DATABASE" command is used. I have the eval copy of SQL 2005 installed and the management studio express installed. I can create databases via the GUI provided with the management studio, but the "CREATE DATABASE" is not recognized via the command prompt. Do I have to be in a certain directory when using this command or is there some portion of SQL I didn't install? The book just assumes someone is not an idiot and knows how to use the SQL commands. :D
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