I write as one just starting to learn to use Visual Studio 2008. Is there a version of SQL server built into Visual Studio 2008 Team Suite? I have heard of SQL Lite but do not know if a database app already exists within Visual Studio. Seeking guidance on how to continue with basic development.

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I believe a minimal instance of MSSQL Server is installed with VS2008. You can download the express version of MSSQL Server though.

Here is a link to MSSQL 2008 R2 Server, you can google for MSSQL 2010/2012 Express versions if you prefer.

No, but its MSSQL -this is Microft database, but its Express editon, that means its capacity is limited to 2GB (in VS 2010 the limit it 4GB).

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