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I designed vb.net 2005 project with SQL server 2000 and then I created setup file for that but now I want to install it in some other system. There I found some issues, that system doesn't have SQL Server 2000 and VB.net 2005. So, I need to add those softwares to my setup file and the database coding to attach with it while installing.
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You should not include SQL Server in your installation. There are a couple of reasons:
0) You can only distribute SQL Server Express for copyright reasons - not SQL Server full version.
1) They may already have SQL Server installed on the network. If so, then they will presumably want to use that version.
2) If they do have SQL server installed and you start proliferating SQL server Express instances, you are going to annoy the heck out of the database administrator...
3) A single site installation of SQl Server is a lot more likely to be backed up than a number of scattered version under user control.
4) Sql server is quite complex for a "normal" user to install and administer - it is not a good idea!
5) It will destroy the primary advantage of using Sql Server over SqlCE or SQLite - multiuser access. If everyone installs their own copy of SQL server, then you will have multiple copies of your database, each used by a single person. This will cause some confusion, and (depending on how you wrote the original database) may take some considerable effort to combine into a single instance when the problem is realized.
 
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If you're using SQL Server Express, see: http://msdn.microsoft.com/en-us/library/bb264562(v=sql.90).aspx[^].

However, the user should have an option whether to install or not if there is already a SQL Server in the environment.
 
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