SQL Server: Changing Instance Collation

- Detach all user databases.
- Put the below command
setup.exe /QUIET /ACTION=REBUILDDATABASE /INSTANCENAME=[either named instance without servername defaultinstance] /SQLSYSADMINACCOUNTS="Admin_User" /SAPWD=****** /SQLCOLLATION=SQL_Latin1_General_CP1_CI_AS
Here few things you need to keep in mind
1. setup.exe should be the source where you copied all your installer file from dvd to local drive.
2. InstanceName will not include the server name only the instance name.
3. If SQLServer authentication is enabled put the sa password like /SAPWD=***** after /SQLSYSADMINACCOUNTS=*****.
4. You can see the log files in below locations
     a. C:\Users\Saifur Shaon\AppData\Local\Temp\SQLSetup.log
     b. C:\Program Files\Microsoft SQL Server\100\Setup Bootstrap\Log\20120805_132518


Source:
http://msdn.microsoft.com/en-us/library/ms179254.aspx

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