best practice for using sql server database in a small asp.net project

hi,

what's the best approach of using a small sql server database with my asp.net application?
I have seen that i can bundle the mdf with my application under app_data. this gives me some trouble with file permissions and database being read only and stuff, but afterwards the database is bundled with my solution directory so my friends can just copy the whole tree or get it from source control and the database automatically gets mounted when i start the database explorer or the web application.

or is it better to just bundle sql scripts and everything to set up the database with my solution so that every developer has to set the database up in his local sql server before starting developing.

what are your experiences here? whats the best way to do this?

thank you