Is it possible in anyway to bundle an ASP.Net as an installable application which users can download and install on their desktops without getting into the modalities of downloading IIS, etc & installing all that stuff. I do understand that IIS is compulsory for asp.net so how can i bundle it as part of the setup to save the business users the complexity of iis, etc.
Yes, this is possible. IIS can be entirely removed from the equation... Basically you'll need to create your own ASP.NET host. Dan Esposito's ASP.NET book has an entire chapter devoted to this. There are other resources online.