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answers:

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I have a scripted database SQL file that I need to execute inside Visual Studio to create a new database. I am so far unable to locate any function that allows me to do this.

A: 

Go to server explorer in VS, right click on server and select run query.

Do you mind telling us why it has to be run inside VS?

In addition, the database projects offers a lot of features that are worth looking at:

http://www.informit.com/articles/article.aspx?p=31764 //old article but still worth reading.

http://www.ssw.com.au/ssw/standards/BetterSoftwareSuggestions/Images/VisualStudio_DataDude_SchemaCompare.gif

http://www.emadibrahim.com/2008/07/10/database-schema-compare-upgrade/

Raj Kaimal