When you try to connect to SQL Server from PowerShell script and you get following message:
Unable to find type [Microsoft.SqlServer.Management.Smo.Server]
then you have to download and install following components:
- Microsoft System CLR Types for SQL Server 2008 R2
- Microsoft SQL Server 2008 R2 Shared Management Objects
- Microsoft Windows PowerShell Extensions for SQL Server 2008 R2
From here.