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Re: Good Database?
For a small amount of information, XML would probably be fine. It should be pretty easy with XLINQ with the .NET 3.0 framework or newer. XML will be slow on large amounts of data though.
If you're more worried about convenience or scalability, but still on the smaller end, you might look into SQL Server Express (comes with Visual Studio and probably with the Express versions as well). This provides largely the same interface as SQL Server, but the "database" is simply a file in your project. I'm not sure how well it works in deployment or about performance though, but I'd imagine it's decent for both.
If your data store is getting noticeably large, you'd want to move to a full database management system, such as MS SQL, MySQL, or Oracle (which is geared more towards enterprisey applications).
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