I would add comments to SQLite. It works great for what it is - and for most small, without installing DB, it works very well.
There are a couple of other options.
Firebird is one of the options. It has a pretty impressive list of features and also includes a .net provider (albeit in beta).
Another option, although not open source, is VistaDB . This is a 100% control option, unlike SQLite and Firebird (and most other databases), and because of this it has many advantages. It is quite consistent with the syntax of MS SQL, supports stored procedures and many other nice features. They have an Express version that is free and can be used in open source projects.
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