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from horses mouth :

MSDE 2000 is a database engine that is included with several products from Microsoft and third parties. In most cases MSDE is offered as an alternative for customers who use these applications in situations that do not require the scale of SQL Server 2000. MSDE 2000 installation often requires an explicit selection by the user in cases where the customer may not need features that require a database, or where the customer can choose to use SQL Server 2000 as the database.

Microsoft products that install MSDE fall into one of three categories:

Products that require an explicit selection to install MSDE:
.NET Framework SDK
ASP.NET Web Matrix
BizTalk® Server 2002 Partner Edition
Host Integration Server 2000
Office XP Premium, Professional, Developer
Project Server 2002
Small Business Server 2000
SQL Server 2000, Enterprise Edition, Developer Edition, Personal Edition (RTM, SP1, SP2)
Visio Enterprise Network Tools
Visual FoxPro® 7.0 and 8.0 beta
Visual Studio® Standard, Professional, Academic, Enterprise (.NET release only - not 6.0)
Windows Enterprise Server 2003 RC1, only if UDDI is enabled
Windows Server 2003 RC1, only if UDDI is enabled
Products that install MSDE by default:
Application Center 2000 RTM, SP1, SP2 (Click here for information regarding W32.Slammer affecting Application Center 2000)
Encarta Class Server 1.0
Microsoft Business Solutions Customer Relationship Manager
Microsoft Class Server 2.0
Operations Manager 2000 RTM, SP1
SharePoint™ Team Services 2.0 beta
Windows XP Embedded Tools
Products with the updated version of MSDE which includes SP3, and are therefore are not affected:
Windows Enterprise Server 2003 RC2
Windows Server 2003 RC2
All customers are encouraged to verify that MSDE 2000 is present via the following steps:

Right-click on the My Computer icon
Select Manage
Double-Click on Services and Applications
Double-Click Services
If MSSQLSERVER is in the list of services, the default instance of MSDE is installed on the machine. Other instances may exist, if they do they will be listed as MSSQL$**** (where stars indicate the name of the instance)

Instructions for removing the Slammer Virus from MSDE can be found at:
http://www.microsoft.com/technet/security/virus/alerts/slammer.asp
 
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