Question : Need user to create and alter tables, but not have dbo_owner access

I have a user who wants to create and alter specific tables. How can I allow him this, without giving him access to all of the database and giving him dbo_owner access

I have, but it does not allow creating a table.

grant TAKE OWNERSHIP, alter, select, delete, update, insert on Table1 to TestUser

Answer : Need user to create and alter tables, but not have dbo_owner access

Yes., You are correct..
Missed noticing that you are using SQL Server 2005..
And ALL would reference DELETE, INSERT, REFERENCES, SELECT, UPDATE permissions only..

And hence you need to do it this way..

GRANT CREATE TABLE TO TestUser;
-- And alter only on the specified set of tables.
GRANT ALTER on Table1 to TestUser;
GRANT ALTER on Table2 to TestUser;
.
.