Hi Martin -
You can run it against any database you'd like.
Embedded / File-Based DB (such as: SQLite, MS Access, SQL Server Express)
Central DB (such as: SQL Server, MySQL, etc.)
Just as you would a normal desktop Windows application. So you can develop full-fledged Desktop applications in VWG, instead of WinForms. One of my clients had this requirement - where they needed a multi-user desktop application that could also used as a full web application. Another one of my clients had this same requirement - full web application w/ an offline desktop application counterpart. The software application I'm developing for them is a sales tool - and their sales people can't always obtain internet access at customer sites. If they want, we will be able to synch back & forth between online (web) & offline (desktop) modes using SQL Replication.
You can provide both a desktop & web version of your software - all from the exact same codebase.
Making sense?
Ryan