For starters, runtime systems cannot function as clients of a hosted database. This is a built in limitation as otherwise there would be many unpurchased runtime solutions being used in place of licensed, purchased Filemaker Pro clients.
Neither can it function as the host database though the runtime file can be opened and hosted by Filemaker server so that FileMaker Pro clients can access it like any other hosted file.
Ok. can you install Filemaker server on a standard windows pc, or does it have to be a server? I'm asking because the DB i'm making, I'm making for someone for free, and do not want them to have access to the backend.. I want to eventually market it to other people in the particular industry. It sounds like I would be better to deny Full access and just create user permissions.. I'm still trying to figure out how to create an admin panel so they can add or remove accounts without having to go under the manage security. I'm having a hard time with that, I haven't been able to find much info on putting an admin panel together. I'm trying to finnish the rest of the DB first then I am going to focus on that. I guess when I get ready to finnish that part, I will refer to your comments on my post, and keep asking more questions...
You can use FileMaker Advanced to strip out the full access account from the copy you deliver to them. (Keep a copy with the Full Acces account for ongoing development.)
With regards to what system on which to install Server, it depends on the specific Windows version installed. See this knowledgebase article: http://help.filemaker.com/app/answers/detail/a_id/7638/kw/system%20requirements
A few hints on scripted Account management:
Use global fields for users to enter account names and passwords.
Set the scripts to run with full access privileges so that a non-full access user can run the script to add, remove or modify an account.