Error when trying to create database using Azure Service Management REST API

I'm trying to create a database using Azure management REST API.

I'm following example from documentation on http://msdn.microsoft.com/en-us/library/windowsazure/dn505701.aspx

Posting the xml exactly as described in the docs:

<ServiceResource xmlns="http://schemas.microsoft.com/windowsazure"><Name>testdb</Name><Edition>Web</Edition><MaxSizeBytes>1073741824</MaxSizeBytes><CollationName>SQL_Latin1_General_CP1_CI_AS</CollationName> <!-- Optional --></ServiceResource>

and getting Error back:
Internal Error. The server encountered an internal error. Please retry the request.

Database server has Windows Azure Services allowed set to yes, My IP is also allowed to access it. When using same code to add for example database server - it works fine.

Any help will be much appreciated.
Vlad.