Basic Deployment problem, SQL Server 2000 and wanna create setup

I have just finished making a small app using Java and using JDBC driver to connect to an SQL Server 2000 that is installed on my PC.
I now want to create a setup (using NSIS) of this app and distribute among friends. But my problem is that I have created the database on my PC on the SQL Server 2000. Do all the people who want to use my app have to have Sql Server 2000 installed ?? How do they get the data from the database if they dont have Sql Server installed??
I really havent tried much of apps that use databases...soo dont know much, but then any help would be appreciated!!

They have to connect to an instance of SQL Server 2000 that has the database and schema that your app requires, so the host machine has to be visible in their network, with SQL Server installed, listening on the port in your URL connection string (default is 1433), with a username and password that you've set up for a user with the appropriate permissions GRANTed.
As you can see, it's not trivial.
If all the people you're distributing the program to can see your machine's IP address, they can simply connect to your database.
If not, you should provide all the scripts necessary to create the database and create the tables, set up the permissions, and populate the data.
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    03.09.2002 / 14:32:45: [LOGLEVEL: 0] PKGenerator.nextVal conn nach = weblogic.jdbc.rmi.SerialConnection@4377a3
    03.09.2002 / 14:32:45: [LOGLEVEL: 0] PKGenerator.nextVal prepareCall
    03.09.2002 / 14:32:45: [LOGLEVEL: 0] PKGenerator.nextVal set gina
    03.09.2002 / 14:32:45: [LOGLEVEL: 0] PKGenerator.nextVal registeredOUtparameter
    03.09.2002 / 14:33:24: [LOGLEVEL: 0] PKGenerator.nextVal execute = false
    03.09.2002 / 14:33:24: [LOGLEVEL: 0] ****** PKGenerator.nextVal SQLException =
    java.sql.SQLException: The transaction is no longer active (status = Rolling Back.
    [Reason=weblogic.transaction.internal.TimedOutException: Transaction timed out
    after 29 seconds
    Name=[EJB de.fiatbank.vehicle.template.beans.TemplateDetailEJB.create(java.util.ArrayList,java.util.ArrayList,java.util.ArrayList,java.lang.String)],Xid=220:408eb51e3b228e43(691834),Status=Active,numRepliesOwedMe=0,numRepliesOwedOthers=0,seconds
    since begin=29,seconds left=30,activeThread=Thread[ExecuteThread: '14' for queue:
    'default',5,Thread Group for Queue: 'default'],ServerResourceInfo[weblogic.jdbc.jts.Connection]=(state=started,assigned=none,xar=weblogic.jdbc.jts.Connection@ffb40),SCInfo[fiatbank+gina]=(state=active),properties=({weblogic.transaction.name=[EJB
    de.fiatbank.vehicle.template.beans.TemplateDetailEJB.create(java.util.ArrayList,java.util.ArrayList,java.util.ArrayList,java.lang.String)],
    weblogic.jdbc=t3://192.168.0.27:7001, LOCAL_ENTITY_TX=true}),OwnerTransactionManager=ServerTM[ServerCoordinatorDescriptor=(CoordinatorURL=gina+192.168.0.27:7001+fiatbank+t3+,
    Resources={})],CoordinatorURL=gina+192.168.0.27:7001+fiatbank+t3+)]). No further
    JDBC access is allowed within this transaction.
    the two files are:
    PKGenerator.java (Weblogic application)
    CallableSamples1.java (TestApplication)
    Has anyone an idea, if weblogic has a problem or we have made a mistake?
    Bye
    Steffen
    Name: files.zip
    files.zip Type: Zip Compressed Data (application/x-zip-compressed)
    Encoding: base64

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