To avoid VDSDK installation you must ship the necessary files with your application.
Just put them in the same folder with your program and ensure that current user has administrator privileges. For compatibility with UAC, ensure that .exe file is linked with correct manifest file.
The necessary files are VDCore.dll and VDSDKDll.dll.
The necessary files are VDCore.dll and VDSDKComServer.dll. Before using you must register VDSDKComServer (regsvr32 VDSDKComServer.dll).
If you do not want to run your application as administrator every time, you can install VDSDK service (VDSDKService.exe). Use "VDSDKService.exe -i" for installation and "VDSDKService.exe -d" for uninstallation. Do not forget to put vdsdk.license in the service folder.