I usually create a solution folder in Visual Studio and put my DB scripts in them. I always use at least this set of scripts:
- Drop model
 - Create model script
 - User functions
 - Stored procedures
 - Static data (lookup tables)
 - Test data (not deployed)
 
Then I simply combine them and run against an SQL Server so I'm able to recreate the whole DB in a single step (by combining these scripts into a single one and executing it).
Anyway. I've never used projects in either:
- Visual Studio or
 - SQL Management Studio
 
I've tried creating SQL Server 2008 Database Project in Visual Studio 2010, but I'm somehow overwhelmed by all the possible server settings (which I prefer to stay default as set on the server anyway). So I'm a bit confused: Should I use this project template or should I just do the same thing I always did?
What do you use and why? What are advantages I may benefit from by using either?