Yep SQL2005 Express with SP1 or SP2 is required for Vista. MSDE2000/SQL2000 definately won't work.
BTW, SQL2005 Express also has a Management program you can download which is as least as good as what came with SQL2000.
BTW, SQL2005 Express also has a Management program you can download which is as least as good as what came with SQL2000.