MSDE, database distribution, osql command line tool.
osql is the simple command line tool for processing .sql files.
An existing database can be emptied, shrunk, detached and then connected with a connection string such as:
data source=PELL\VSDOTNET;AttachDBFilename=c:\tone\kzdev\vsp\jobsearch\jobsearch0.mdf;initial catalog=JobSearch;integrated security=SSPI;persist security info=False;workstation id=localhost;packet size=4096
A very simple batch file for running osql:
@echo on
set server=PELL\VSDOTNET
set newdbname=JobSearch
osql -e -d master -S %server% -E -Q "create database %newdbname%"
osql -e -d %newdbname% -S %server% -E -i "JobSearch.sql"