I have a NAnt-based script which that I run on my local PC that connects to SQL Server 2008 Express also running on my local PC to drop and recreate databases using .sql fil
The correct provider for SQL Server 2008 is SQLNCLI10.1. For SQL Server 2012, that would be SQLNCLI11. (source)
SQLNCLI10.1
SQLNCLI11
Sadly, the migration to 2008 did not pick up the change...