Edwin,

we moved the site on to the new server and reinstalled the latest version.

the only problem we had have so far is creating a site.

creating a template is fine.
creating a site is giving and error.

after i input all the details. it gives out a error saying.

Database Error: Unable to connect to the database:Could not connect to database

this looks like the default joomla error screen which we get when we database details are incorrect in configuration.php file.

on my localserver i am having "MakeDB - DB Connection fail.WARNNOTCONNECTDB" for the same.

"MakeDB - DB Connection fail.WARNNOTCONNECTDB" mean that JMS try to create (MakeDB) a DB and it is not able to do it.

If you have migrate your environment, I support that you also restore the DB and perhaps you have change the DB name, MySQL User and password.

If you have change the DB parameters, you have to go in the "configuratoin.php" file of each deploy directory and update the joomla configuration.php manually to provide the new parameters or you will not be able to connect on the DB.

Edwin,

the fact it we uninstalled it multisites and deleted the multisites directory completely and now installed it again.

thanks

but even after new installation we are still having this problem.

i am assuming this might a bug in the latest version or may be something else.

because the older version seems to be working fine on my local server.

thanks.

Based on your title, you say moved of server.
Working in local and on another server is totally different as the DB connection are propably different and the privileges also might be different.

Here clearly JMS try to connect on DB and it does not have the permission.