To distribute the Access runtime you must have the Office Developers Edition software. No other versions give license to distribute your program. If you have the ODE, you can use the Package and Deployment Add-in to package all the necessary files for your runtime app, including any OCX controls you may have added.
If you are going to distribute your database you do not necessarily have to convert it to an MDE. All that does is strip away your source code so end-users can't make design changes to your objects. Many companies like to keep the ability to create Ad-Hoc reports or forms so an MDE would not work.
Another thing to consider is the complexity of installing Access onto a machine without Microsoft Office or with a different version of Access. We had so many conflicts using the built-in Package and deployment wizard we opted to use a third-party Access 2000 object in an Installshield 6 Pro Setup program. This allows us to install our app on any system without affecting their current image - in fact we have some that are running Access 97 full version in tandem with our Access 2000 runtime without any hickups.
If you are planning to install the app yourself and have administrative privileges to the end-users PCs then you should try the Package and Deployment wizard and see how it works, but if you're going to burn some CDs and have the end-users install the program you'd be smart to go with a full-blown installer like WISE or INSTALLSHIELD.
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