Hey
the database would be placed in a folder with the application, yes? as for points 1,2,3,4, it's not likely to be a problem. In my couple of old applications I had an automatic update system added, which when the application was launched, checked if a newer version of the application was available and then downloaded and automatically extracted and replaced the files. The condition was that the installer, along with the file with the application version information, had to be normally available for download via a web link, i.e. you add it to some hosting, have a link to the file and when you go to it in the browser it immediately downloads the application, without any confirmation windows, clicking on buttons and so on.
Regards,
Mariusz