Hello buddyel,
It is very easy using the .net framework to distribute your application along with the database (I am not quite sure about copyright information).
You create a zip file containing your application along with all the other required files (remade, help, etc) AND your database. Make sure that the directory path is stored in the zip file
Wherever in your code you are using a file DON'T use absolute paths (e.g. c:\development\myprojects\project1\Database) but instead use Aplication.ExecutablePath() and then add the database path (e.g. Dim MyPath as String=Aplication.ExecutablePath() + "\Database").
Doing so will allow your application to run from any path (because the "installation path" is retrieved from the system)without need to change the code or force the users to install it into a specific path.
Hope that helps,
Camel