It requires the "lite" version of SQL Server installed automatically by the BCM software on your local machine. It does not require a separate server.
FYI, there is a separate newsgroup for BCM issues -- microsoft.public.outlook.bcm

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Sue Mosher, Outlook MVP
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Microsoft Outlook Programming - Jumpstart for
Administrators, Power Users, and Developers
http://www.outlookcode.com/jumpstart.aspx
> I'm trying to load Business Contacts Manager to my outlook, not having any
> success it goes through the wizard and then when you go back into Outlook the
> contact groups are still the same, doesn't add Business Contacts.