How to create a SQL Server database in Visual Studio.NET ?

Question

Guys:

I've had difficulties creating a SQL Server database in Visual Studio.

Under "Server Explorer", I right-clicked on "Data Connections" and chose "Add Connection".

In the wizard that appeared, I selected Microsoft SQL Server and clicked continue.

In the Add Connection wizard that follows, should I enter "localhost" for Server name because I'm connecting to my local machine and IIS is already part of my Visual Studio.NET ?

Any idea ?

Thanks.