develop & deploy windows application with local db

Question

How to develop a C#.Net windows forms applications which contains a local database and rdlc reports. What its deployment process will be in following regards

1. Do we need to install anything for "rdlc" reports on deployment machine.
2. If we use Sql server compact edition, can the application be used as portable application means if we copy the installation folder in USB drive and use it on another machine , database will be intact.
3. are there any better ways to develop and deploy an application like that.