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You can create installer project in Visual Studio which should do most if not all of the work.
Lord:
I was able to find directions on distributing the .NET framework:
[msdn.microsoft.com...]
And I found directions on creating an installer:
[developerfusion.com...]
The latter page mentions running a 'service' rather than a program. Are you saying the installer should be able to install the program on multiple computers and include Dotnetfx.exe?
If target machine has not got .NET installed on it then you will either have to tell user to install it (not very user friendly) or install it as part of your main installation (big file, but these days 20Mb is nothing).