The answer is yes, you can create a LabVIEW installer that automatically installs LabVIEW and the run-time engine. In LabVIEW 6i, select the "Installer Settings" tab. The click on the "Advanced" button near the bottom.
You can specify if you want to install the LabVIEW Run-Time engine.
Thus, when you distribute the application, they would have to run the installer, which will prompt them to install the run-time engine and your application.
I hope that helps. Regards,
Shan Pin Koh