If your are interested in learning how to redistributing the .NET Framework with your applications check out the "Using Visual Studio .NET 2003 to Resdistribute the .NET Framework" article in the MSDN Library here.

Of particular interest is the "Setup.exe Bootstrapper Sample" mentioned in the paper; get the code here. This sample demonstrates hot to create a setup distribution, that when launched will install the .NET Framework version 1.1 Redistributable (if required), along with language packs and of course you .NET Framework-based application.