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In the example below (added carriage returns for readability) I am able to create a resource group and Sql Server just fine. When I run line #19 I get the vague error message:

BadRequest: An error occurred while processing this request.

I've hit a wall without the proper feedback to help me troubleshoot. I can create databases in AzureServiceManager mode just fine, but I'd like to be able to use resource groups to manage my databases. There is so little information available for this scenario so any information to point me in the right direction will be much appreciated!

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I think you should use New-AzureRmResource instead of New-AzureResource; since you're working in resource manager mode, the only command to create a new Azure resource is to use New-AzureRmResource.

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