Vlad,

Here's some quotes pulled from the Microsoft Licensing Agreement for SQL Server shipped with my MSDN subscription:

"Microsoft grants you the nonexclusive, royalty-free rights to use, reproduce, and distribute the Microsoft SQL Server Desktop Engine ("MSDE") and the REDIST.TXT file ... provided you compy with the Distribution Terms listed in the REDIST.TXT file."

"If you choose to redistribute MSDE, you also agree: (a) that your application shall not substantially duplicate the capabilities of Microsoft Access ..."

You can probably get the full text of the license agreement somewhere on the MS website, but I think the above is pretty clear. If you like, I can email you the REDIST.TXT file. HTH