There are a multitude of options available but the most obvious choices are Access, SQL Server CE and SQL Server Express. All integrate relatively well into VS, given that they are from Microsoft too.
Access requires you to create the database in the Access application itself, before adding it to your project. Generally the requirements for accessing the database once deployed are already built into Windows, although a driver may need to be installed for Access 2007.
SQL Server CE and SQL Server Express databases can be created directly from the Add New Item dialogue, although you must have installed the one you want to use on your development system.
SQL Server CE requires you to deploy a few extra DLLs with your application in order to access the database.
SQL Server Express requires you to install a server.
All three are free to use but the Access application itself will cost you so, if you don't already have Access, I'd suggest one of the other two.