One thing that would concern me is ensuring backup of the sql server data at the client locations. If I understood you correctly, each client will have their own copy of SQL Server Express? Not a bad plan, as long as you can ensure it is installed and configured in a standard manner, stored on a reliable system, and good backups are put in place. Then what about security?
You would want to ensure everyone has the same standard install and configuration done and the same backup plans for easy maintenance. who would do that? Just stuff to consider. You might look at this:
http://www.brianmadden.com/content/article/How-to-Automate-the-Backup-of-a-SQL-Server-2005-Express-Data-Store
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