>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?

Yes, you can run SQL Server on a remote machine. That is the most common way of doing it if you are a corporate programmer. I'm pretty sure Express will run that way, too.