Hi TheKing,
Make sure that the siteadmin username ansd password are correct and valid (meaning they haven't changed or expired), and that the DBA hasn't changed or revoked the permissions necessary to create new table space on the DB (the installation guide lists the permissions that this user account should have in order to fully perform and if one or more of them have changed then this issue can result). Since you can't ping someone may have changed something on the DB server as well, and I would check into that. Sometimes DBA's and IT Admins do periodic maintenance and site survey's and decide that the security is too lax on these servers and ''tighten'' it up not realizing that they are effecting the performance and capabilities of the server by removing necessary permissions.

Thanks,
Dan

@HomerJ,

Thank you so much. It was indeed the DB user ''QC_Admin'' password. Password was expired, after resetting it, problem is solved.