Select the database type that you will be using in the projects in this workspace. You are generally not limited to one single database type, but the database selections that you make here will be recorded and used as defaults whenever you need to specify a database connection.
If you do not know which database type to choose or your projects will not connect to any database then choose "Embedded".
The next step in the Wizard will depend on the database type you select...
Pervasive PSQL Database Connection
Database Connection for Other Drivers