Hi samathag,
Based on my understanding, you want to deploy your application along with the SQL Server database, right? If so, you need to use a Custom Action to execute the SQL script to create the database. Check the following article for detail steps:
· Walkthrough: Using a Custom Action to Create a Database at Installation
http://msdn2.microsoft.com/en-us/library/49b92ztk(VS.80).aspx
More information about Custom Action, please check the following link:
http://msdn2.microsoft.com/en-us/library/bd8h80ez(VS.80).aspx
Hope this helps.
Best regards.
Rong-Chun Zhang