Hi!
MSDE *is* SQL Server 7. They just chopped off all the front end tools like Enterprise Manager, and crippled the MSDE so it will not perform well with heavy traffic. (Assuming you view SQL Server 7 as performing "well" with heavy traffic. lol!!!!!)
But for intents and purposes of building databases, MSDE is no different from SQL Server - it has to do all the same things with the system tables. So there is no simple way to "attach" a database.
I use batch files written in osql to build the DB, batch files with bcp to load data into the tables once the db is built. Two externally launched master batch files, and I have a SQL Server (MSDE) db. Same batch files work for either - we use both.
That is probably as simple as it will ever be.
You could also use SQLDMO - probably from InstallScript, definitely from a VB app. But I think that would be a lot more trouble than running the batch files. I did a roll-your-own "Enterprise Manager" in VB/SQLDMO to deploy with our MSDE apps, since it does not provide any admin tools. I don't think it would be very efficient for creating dbs though - you have to navigate through a DAO-like hierarchy of objects.