Which database application do you want to install ?

sorry if i was unclear , its not a database application i  want to install, its acutually an application that is served by  a SQl server database , s i want to build an application package which  will install the necessary files in a local directory and a DB in the SQL server when they enter thier necessay information for the SQL server they want the DB placed on,
is there any way to do this ?

SajhaHelpuser, you are still not very clear on your issue. If I understand correctly, you want to package your applicate and deploy/have it extracted in that SQL DB folder.

Considering you are doing development thru Visual Studio, You can do.  FIle>New Project> other Project> Setup and Delpoyment.

http://support.microsoft.com/kb/307353
http://www.google.com/search?q=how+to+create+a+package+in+visual+studio&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a#q=how+to+create+a+package+in+visual+studio&hl=en&client=firefox-a&hs=ypy&rls=org.mozilla:en-US:official&prmd=ivns&source=univ&tbs=vid:1&tbo=u&ei=VVVDTYm0BcnUgQfto6DoAQ&sa=X&oi=video_result_group&ct=title&resnum=6&ved=0CEEQqwQwBQ&fp=1c5f2baf197528df

Bunch of youtube videos aswell.

hope this helps....if that was your issue.