ically, when using SQL Server, you are running in a client-server scenario, and SQL Server is the server portion. The connection string stored in app.config would point to the SQL Server, and the user would never need to know anything more about the database.
If your application is designed to be run outside of the network (i.e. 3rd party), you have a couple of options. First, if you want to use a full version of SQL Server, you can make a client installer and server installer. The server installer would be for setting up the server side (including the installation of SQL Server), and during the client setup, they would need to enter the name of the database server.
If the client has SQL Server Express installed, you can supply the database file, and do a direct connection to it rather than installing it inside SQL. However, if the client does not already have Express installed, this won't work.
Finally, SQL Server Compact Edition is designed for running on the client. You can do a "bin deploy" - that is, copy the SQL CE .dll files with your application, rather than installing the software, and the client can use the supplied database. If you haven't written the application for CE, this would require some rework.
Take alook : http://stackoverflow.com/questions/14600...n-client-s
So, here something about your subject
look post #7 for see how create setup
Microsoft advice you to use ms db manager too