Ok I figured out what my problem was!

I mentioned only the IP Address rather than IP\instance name

and then I did the following:

LinkedServer>> Properties>> Server Options >> Use Remote Collation >> FALSE It is set to True by default.

Now, what I need to know is, when I try to exec sp_addlinkedserver,

I get an error that says :

The user does not have permission to perform this action.

What permissions would I need for this and how can I set it?