I have two databases with equivalent structure and I need to extract data from one of them in form of INSERT statements (generate script to apply it on the othe
SSMS supports scripting all data as INSERTS in 2k8:
Right click on a database and select Tasks->Generate Scripts...
Pick only the tables, Click Next.
Click on the Advanced button. Scroll down and select "Types of data to script" == Data Only

Decide whether you want results in a new query window or a file. Click on to Finish.
You then change the using DBname at the top of the script.