I searched in the .NET directory and found two MSDE folders, one in Program Files\Microsoft Visual Studio .NET\Setup\MSDE and another in Program Files\Microsoft Visual Studio .NET\FrameworkSDK\Samples\Setup\msde

I installed each at a time and they installed two instances of MSDE, one called MSSQL and another called ComputerName\MSSQL$VSdotNET

Is there any difference between these two? (i guess not) but dont understand the reason why it should be this way.