Q:

Do we need to install Complete Dotnet framework

Do we need to install complete donet frame work for just executing .net application, can't we just embedded the CLR in the Executable itself. 

A:

You have 2 options here:

Something called "Client Framework", which is a trimmed-down version of the .Net Framework.  It contains only certain assemblies, and is therefore more limited, but it might be enough. 
Using a "linking" tool to embbed the .Net Framework DLLs into your application.  Although this might work, it is not recommended.  Updates to the Framework will not be used, versioning issues when other versions of the .Net Framework are installed, or other applications that use the Framework are running...

Basically, based on the latest statistics, more than 90% of Windows computers already have .Net Framework 2.0, and more than 65% have .Net Framework 3.5 SP1.  This means that you shouldn't have a problem deploying your application without the Framework...

