First of all let me thanks you all for your support throughout my project. Now just a few final steps are left to finish the SMS application. Now I have to make a phonebook to store the contacts. For this purpose I need a database, I tried SQL Server 2005, but the problem is that i have to use the application on multiple systems. So i cant use SQL server.

I need a database that is local within the application. Whenever the application is installed on any PC, It automatically creates a database over there. How can I do this? I tried Local Database item of Visual Studio but don't know how to proceed, i.e how to connect and communicate with that database?