The Microsoft SQL Server 2000 Desktop Engine (MSDE 2000) is a data engine built and based on core SQL Server technology. With support for single- and dual-processor desktop computers, MSDE 2000 is a reliable storage engine and query processor for desktop extensions of enterprise applications. The common technology base shared between SQL Server and MSDE 2000 enables developers to build applications that can scale seamlessly from portable computers to multiprocessor clusters.
Designed to run in the background, supporting transactional desktop applications, MSDE 2000 does not have its own user interface (UI) or tools. Users interact with MSDE 2000 through the application in which it is embedded. MSDE 2000 is packaged in a self-extracting archive for ease of distribution and embedding.
In addition, MSDE 2000 can be built into applications and redistributed royalty-free with Microsoft development tools, such as Microsoft Visual Studio® .NET and Microsoft Office XP Developer Edition. This allows developers to build enterprise-class reliability and advanced database features into their desktop applications.

MSDE 2000 is a royalty-free, redistributable database engine that is fully compatible with SQL Server. MSDE 2000 is designed to run on Microsoft Windows® 98, Windows Millennium Edition (Windows Me), Microsoft Windows NT® Workstation version 4.0 (with Service Pack 5 or later), and Windows 2000 Professional as an embedded database for custom applications that require a local database engine.
An attractive alternative to using the Microsoft Jet database, MSDE 2000 is designed primarily to provide a low-cost option for developers who need a database server that can be easily distributed and installed with a value-added business solution. Because it is fully compatible with other editions of SQL Server, developers can easily target both SQL Server and MSDE 2000 with the same core code base. This provides a seamless upgrade path from MSDE 2000 to SQL Server if an application grows beyond the storage and scalability limits of MSDE 2000.

Downloadable file name: SQL2kdesksp3.exe SP3a.  SP3a updates for MSDE include updates and new installations for the database components of instances of the SQL Server 2000 Desktop Engine, including: The Desktop data engine. Database client connectivity components, such as the OLE DB Provider for SQL Server, the SQL Server ODBC driver, and the client Net-Libraries.
SQL2kdesksp3.exe includes all of the files that are required to install a new instance of Desktop Engine (.msi files), to upgrade all existing instances of Desktop Engine (.msp files), as well as to consume merge modules (.msm files) into applications.

After downloading the SQL2KDeskSP3.exe, you must extract the MSDE 2000 SP3a files:
Open Windows Explorer and navigate to the folder in which you downloaded the MSDE 2000 download file (SQL2KDeskSP3.exe).
Double click on the download file to extract the MSDE files. When asked, specify the folder into which the SP3a files can be extracted.

The Microsoft® SQL Server™ 2000 Desktop Engine includes a Setup.exe file that an application setup process can use to install the SQL Server 2000 Desktop Engine. You can define settings for customizing the way Setup.exe installs SQL Server 2000 Desktop Engine. These settings can be specified through either command prompt switches or an .ini file.
The example in this section will install a new instance of MSDE 2000 that has been configured with its network connectivity enabled (DISABLENETWORKPROTOCOLS=0).
These example install instances using the default for configuration items such as collation. The configurations can be controlled by setup parameters, such as COLLATION, DATADIR, and TARGETDIR in the Setup.ini File:

[Options]
TARGETDIR="D:\MSDE\Binn"
DATADIR="D:\MSDE\Data"

To install a default instance configured to use Mixed Mode, execute:

setup.exe /settings C:\Users\Zahn\Test\MSDE\setup.ini
SAPWD="manager" SECURITYMODE=SQL DISABLENETWORKPROTOCOLS=0
/L*v C:\Users\Zahn\Test\MSDE\MSDELog.log

Enter all in one line, when the setup has finished consult the logfile: MSDELog.log. You should see an icon in the taskbar where you can start and stop MSDE.

Install Desktop Tools (Enterprise Manager, Query Analyzer) from the SQL Server CD.