I have a new install of Visual Studio Team System 2008 Database Edition that is updated to SP1. I went to make a new SQL Server 2008 project and noticed that there was not a template available. I thought this was odd as I have SQL Server 2008 installed locally. After a little research, I was pointed to the following update: Microsoft® Visual Studio Team System 2008 Database Edition GDR R2. After closing VSTS and installing the update file, I restarted VSTS and the templates were there.