SQL Script Error - Could not locate entry in sysdatabases for database 'PIMTool'

I am getting the following error for the SQL Script below and I cannot figure out why.  Any suggestions?  Also, since I have two SQL server instances on my computer a LOCAL and a SQLExpress do I need to specify anything in the SQL script file when I executing this through a MSI installer.  I receive the error message when I try running this script through Query Analyzer againast the SQLExpress instance.  

Server: Msg 911, Level 16, State 1, Line 1
Could not locate entry in sysdatabases for database 'PIMTool'. No entry found with that name. Make sure that the name is entered correctly.

use Master;
if exists (SELECT name FROM Master.dbo.sysdatabases WHERE name = N'PIMTool')
drop DATABASE [PIMTool];
GO

IF not EXISTS (SELECT name FROM Master.dbo.sysdatabases WHERE name = N'PIMTool')
CREATE DATABASE [PIMTool];
GO
use PIMTool;