Visual studio Windows Forms project installation

I have developed a small WindowsForms project with visual studio 2010.
The debug folder of the project has

a)SQLite database i.e. Mydatabase.mdf which has tables and
b) 2 DLLs. i.e. System.Data.SQLite.dll and SQLite.Interop.dll to support SQLite database

I need to create a setup file and mail it to my friend.

Should I go for creating windows installer or setup file. When I tried to crete setup file in both debug and release mode, the build did not succeed. I have added System.Data.SQLite.dll as assembly reference in the project. But the tricky situation is I need not add SQLite.Interop.dll as assebly reference to the project. But it should be there in debug folder. If my undertanding is wrong, please give me some hints, in which direction I need to proceed.