When you say application, do you mean like a VB-style application, or a web-based one.
If you mean like VB, then I dont think its possible, but if you mean a web-app, the yes it is possible. Im working on one at the moment.
The easiest way to get someone to install (and this is the way I plan to do it) is to tar and gz (for *nix servers) and zip it up (for windows) and then have both available online. Then in the documentation, you tell the admin to first of all go to the install.php page (or whatever you want to call it) and then ask for the details of the server/admin user and then it will run the correct scripts to create the database itself.