I've just created a DB in Denali setting the size to 2MB. It worked, no problem.

Minimal database size depends from model database. If you need to change database minimal size you should change model database.

@Rami: Thank-you for sharing this information. It is good to see and work with the new features of SQL 2012, but at the same time one must have an idea of how the storage requirements change (while the change from 2MB to 3MB itself is not such a big deal in today's storage scenarios, knowing this is still important).

@pl80: What release of Denali are you working with? My understanding is that this change is effective CTP03 onwards.

@Dubelewskyj Oleksandr : That is correct. The minimum size of any database (including the tempdb) depends upon the size of the model database. You may refer to my post - SQL Server – TempDB – Is it a copy of the Model database? - for details.

CTP 3

Yes, will agree, While creating new database, it will be replica of model database only.