You can use SQL Lite with .NET. In fact, if you are willing to keep your code so it can translate to mono, which encompasses most 2.0 (3.5 still upcoming), you can run your code on the Mac, as well, if you stick with SQL Lite:
http://mono-project.com/Main_Page
It really depends on how much bang you need. SQL Express, which has been mentioned numerous times in this thread, is SQL Server. It has some restrictions over full blown SQL Server, but it is the full SQL Server engine, so it is not a lite version, unless you think restricting a database to 4 GB makes it light. If you need heavier services like some Reporting, some message queueing (service broker), then SQL Express 2008 is your creature.
For lighter in the MS world, you can go with SQL Compact. As with SQL Lite, it is limited in scope, but you stated you need a lightweight database.
If you are really familiar with SQL Lite, I see no reason not to head that direction. Add a factory on top of your database access, just in case you change your mind. Then you will not have to rip up your entire app to switch databases.