Via the link below, I've had the best success with its approach.

Signature
Robbe Morris [Microsoft MVP - Visual C#]
.NET Setup Deployment - MSI, Cassini, SQL Server, NTFS
http://www.eggheadcafe.com/tutorials/aspnet/2a5222d8-3d69-4f1c-b5ab-35ca33da0f65
/net-setup-deployment--m.aspx
> Hi, I would like to make a Setup project with SQLExpress included, and it
> almost works :-)
[quoted text clipped - 16 lines]
>
> Karsten Lundsgaard
Karsten Lundsgaard - 30 Oct 2007 09:47 GMT
Hi, Robbe Morris.
Thanks for the help, but I would like to install it without an
"Installer"-class.
BTW. I have already solved the problem with the NTFS permissions in the
PACKAGE.XML file.
<Command PackageFile="sqlexpr32.exe"
Arguments='-q /norebootchk /qn reboot=ReallySuppress
addlocal=all instancename=KAMSTRUPMT_UFx4 QLAUTOSTART=1 SECURITYMODE=SQL
SAPWD=xxxx SQLACCOUNT="NT AUTHORITY\SYSTEM" SQLBROWSERACCOUNT="NT
AUTHORITY\SYSTEM" AGTACCOUNT="NT AUTHORITY\SYSTEM" ASACCOUNT="NT
AUTHORITY\SYSTEM" RSACCOUNT="NT AUTHORITY\SYSTEM"'
Thanks
Karsten Lundsgaard