This is an interesting development from Microsoft – they now provide a simple embedded database solution for web apps. This allows a database to be included in with the app, without having to have a specific database external to the app (ie. no more db deployment issues).
http://weblogs.asp.net/scottgu/archive/2010/06/30/new-embedded-database-support-with-asp-net.aspx
Dom
Doms Code 
That is good news from MS. Hopefully, they will add support for stored procedures, functions,(triggers?) etc