Basically, if there is a byond installation folder (which is generally the folder installed to "Program Files/BYOND") in the same directory as the EXE, the EXE will use that version of byond.exe instead of the installed version. This means that a user doesn't have to have BYOND installed if your distributable ZIP includes this folder. In a nutshell, the process to create such a distributable is:
1) For project test.dmb: Make EXE... set the url to something like file://test.dmb##guest
2) Download the [zip] file from the BYOND download page and unzip it in your test/ directory. This should create a byond/ folder.
3) Package Files.. zip up test.exe, test.dmb, test.rsc, and the byond/ folder into test.zip.
4) Distribute test.zip to your friends and tell them to run the included test.exe. This will launch the local version of byond installed in step 2.
I will write a better tutorial for this in Dream Makers. In a future release we may also provide some convenience routines to package BYOND for you.
Wouldn't you(the seeder) need to keep updating that exe's specific byond version? So that the version everyone else downloads (when they click that game link) never becomes outdated?
Yeah, currently it's just going to run whatever version of BYOND you distribute with your game. Although I figure if it works when you package it up, that gives insurance, since in theory a future BYOND might not work with your game.