If you publish your LS application as a βdesktopβ application, all you need is an instance of SQL Server.
It may be SQL Express or some other taste of SQL Server that may occur on your computer.
You can also use the instance of SQL Server available to you on the network you are connected to if you want to do it this way.
You can even use the instance of SQL Express that LS installs for you (which MUST be there, you CANNOT remove it, or the debugging experience will no longer work).
You do not need anything, there will still be three "levels", but all three can be on your computer. You do not need IIS on your computer, a local web server will be created for you by the publishing wizard.
Here is a link that will give you the "official" steps for deploying a desktop application.
How to deploy a two-level application - http://msdn.microsoft.com/en-us/library/ff852056.aspx
Yann
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