Hi there,
I have noticed in my Local SQL Express 2008 the collation of my system databases are different then my customs tables I created our servers.
Is there an options to set the Collalation when installing? I tried to change it in the database properties but get errors
Have a look at this MSDN article: http://msdn.microsoft.com/en-us/library/ms179254.aspx
Normally, the desired collation is specified during installation.
There are numerous levels in which you can set the collation, including server, database and column levels. If you change the collation at any one level, you won't change the collation at the other levels.
As you may notice from the link in @Bernard's answer, changing the server level collation takes a bit of work, including rebuilding system databases.
As for the error when changing the collation for a database, please include the error information. Someone, will be able to give some feedback there.
If your local SQL Server Express 2008 installation is not too extensive (e.g., few user databases and few changes to the installed configuration) and you can restore or rebuild the user databases; your easiest fix may be to reinstall the SQL Server. There should be an option to select the collation at that time