A: 

Wizards are just a helper and sometimes don't give you options for all the possibilities. You could use the wizard to create both scripts and then copy paste them together.

AaronLS
Indeed. But I'm looking for the "DROP statements followed by CREATE statements". option that is described in the script behavior section.
Rob
A: 

get some tool like sqlbelt or somthing like this to do both create and drop in one script. or use sql2000 for this that will give option like this from that you can create both drop and create in one step.

KuldipMCA
Are you saying it isn't possible in SSMS?
Rob
if you find this then tell us so we can use thisi facing problem like this many times.
KuldipMCA
I think there is a bug, but I'm pretty shocked that it could survive this many service packs.
Rob
Hey, I was able to resolve by installing sp1.
Rob
Thansk for informating this
KuldipMCA
+1  A: 

Its a bug. It appears to be fixed after I installed SQL Server SP1. Appears they have just added a single drop down called script drops - which makes a heck of a lot more sense than an option to "only script drops".

Rob