Hey Ravi,
As to your previous post pertaining to the codesmith.snk file.
"Inside
the template you are trying to build, open up the AssemblyInfo.cst file
(if it is there) and remove the AssemblyKeyFile attribute.
If
your template doesn’t contain an AssemblyInfo.cst, then check to see if
it is generating a project file with the CodeSmith.snk (Strong Name
Key) inside of ItemGroup. If you find this XML node in your project
file remove it, as your assembly doesn’t need to be signed."
You shouldn't need to change any of code in the SqlSchemaProvider.cs file.
As to your second question, have you checked out the debugging documentation in the CodeSmith User's Guide? To access this, open CodeSmith Studio and hit the F1 shortcut key. Look for "Advanced Template Syntax" on the left sidebar and under that take a look at "Debugging Templates"

If you are still unable to debug with vs2008. Please leave your repo steps, and I'll try to reproduce it locally.
Thanks
-Blake Niemyjski