Security permissions & granting user?s permission

Hi Guys/Gals

I am new to DBA role pls help me with this

A developer asked me to give him permission to create DB in our local development server. But our company policy is not give permission.

I know how to create a new DB using GUI (Microsoft SQL server management studio SQL-SERVER 2005) but i donno

1) How to give users rights/permissions
2) Create a new user
3) Create Group policy and attach users to it

basically i need to know more abt security features in SQL-SERVER 2005 using GUI (Microsoft SQL server management studio)

I searched the web i didn’t get any basic step by step instructions at all.

Cheers