VS 2008 Make A Program That Will Track Do Not Rent (DNR) People

I want to make a program that will track Do Not Rent (DNR) People.I'm a intremediate vb6 programmer and have not coded in a long time.I do have and wanting to do this on VS2008 professional in VB2008.I did a simular program from a vb6 book about 12 years ago. it was a address book that i changed a little to add some things I needed it to keep track of, and it saved everything in a text file.I want to know what the pros and cons are for using a text file? xml file? or a data base?the data i be keeping track of will be vital statistics as name, state id number, id type, ect. and a picture of the id from a scanner or import from a .png, .jpg, or tiff image.If i use a data base file either Access 2007, MySQL, or SQL 2005/2008 file, do i need to have Office, MySQL, SQL 2005/2008 programs installed on the the computer im doing the programming on? do i need to have the above programs installed on the target computer?i do not think a txt file will work for me because of the picture i want to keep with the data not seperatly. So to make it a little more clear I want to be able to add, append/update, not to be able to delete a record, and be able to search the file for a record.I want to be able to navigate the records or file with first, previous, next, and last. each record will be showed seperatly.I would like to have a STATUS (lol thingy) that only my wife or I can change but let my employees be able to enter the rest of the information on there own. the STATUS Levels will be like 1st warning, 2nd warning, 3rd warning, DNR, and Rentable at our discression. I want it to only allow changes to status if they have the proper password. so i do not know if this also elimates txt files or xml files as an option.and when the wife, my employees or I make an entry I wanted it to add the time and date with the comments we entered in with the initials of the person whom entered the data. so i was thinking i will need to have security levels in my program and give each person a password so the program can fill out most small data itself.

if i do decide to use a database file to store the data, picture, and employee information can it be done with 1 table, or should i try to seperate the data in seperate tables? should i use one to one or one to many? I do not think one to many would be the best solution? it been like 12 years since I did any database programming in school and it was dBase3. If u think it be best to use multiple tables could u give me an example as to how to seperate the data.The client info would be like a address book with a picture and a comment box that will automatically add a date/timestamp and the users initials with a space between every updated or appended entry., and the employees would have there login in name and password, and initials.I was thinking of making a wizard to enter the data in for both employees and the DNR's as for people changing the date on the computer and entering info so to make it look they entered data on an earlier date I was thinking of having it log onto the internet time server and setting the date/time of the computer in the background as it loads up.