Although I can't answer your question directly (haven't had much
experience with embedded, usually I cope with a classic client-server
setup), I might suggest a simple workaround. Have you thought about
creating an empty database (by hand, via isql or any other means) and
distributing it together with your app, as a kind of template? If you
need to create a new database, just copy (programmatically of course)
the template DB under a new name, then connect in embedded mode and
populate it just as you would any other database. Just skip the "create
database" step, use an already created one. Hope this helps if you don't
get any better suggestions (but I think you will ;) ).
regards
Tomasz