I'm in the process of setting up the desktop reporting database so I can
record NAL events such as app distribution success/failures. It's not
clear to me if I need to distribute the Sybase files and registry
settings to all the PC's to enable NAL to write to the database.

The docs say that XP machines already have the proper Sybase ODBC
drivers installed. If that's the case, in an all XP environment, do I
need to distribute the files and registry settings, or is it enough to
fill in values given in the documentation for the ODBC tab on the
Desktop Management Database object?