I'm learning about making the move from VFP to Visual Studio and I'm reserching database engines for our in-house app.

One thing that I'm finding confusing about considering SQL Server Express is learning whether it can only run on the same local machine as the app? I need the data and the database server software (whatever I choose) to run on Windows Server 2003, and handle data requests coming from my custom app that will be installed directly on the local machine of about 8 users. Does SQL Server Express handle this configuration? Does VistaDB?