A default VSS installation stores all its files in one centralized database. If you can, always store all your project files in one database. This is usually preferable to having more than one database, because of the following limitations inherent to multiple-database systems:
For these reasons, the recommended method is to organize your files into projects within a single database whenever that is possible. Sometimes, however, there is a requirement for more than one database. For example, large companies, especially those in which people are working on many diverse and relatively unrelated projects, may need to decentralize.