We are currently updating our SQL Server database create and update scripts by hand, and I'm looking for a better way.
I've worked extensively with MySQL Workbench before, and it has functionality to update a database creation script to match a live database, and in the process also produce an update script.
Is there similar functionality available in SQL Server? If so, can you please provide references to it?
If you're using Visual Studio, the answer is SQL Server Data Tools (SSDT). It comes with SQL Schema Compare functionality. Check it out here: http://msdn.microsoft.com/en-us/data/tools.aspx
SSDT can also do a lot of other stuff, like automated database testing, automated build and deployment of databases, etc.
There are also 3rd party alternatives, such as Red Gate's SQL Compare: http://www.red-gate.com/products/sql-development/sql-compare/