Since Im packaging\deploying\installing a VB-SQL-ADO App fr the 1st time, I cant figure out a few things

1.Does the target machine need to have SQL Server Installed on it. ` coz incidentally , the one on which I tried to install does.

2. If it doesnt need to have SQL Installed as I was told by someone, what do I put in the ServerName, UserName and Password entries while opening my ADO Connection ??