Setting up Orchard development workspace

I'm just learning orchard CMS, and have some questions:

1. How do I setup development environment for the team? should I use source code of orchard itself (I don't want that) or is there a way to use Orchard in compiled state?
2. I would prefer each developer to have its own local copy of DB, won't it make troubles for the tea开发者_开发问答m when they get sources and need to go in admin mode and manually execute updates on modules?

1. For development you should definitely set up full source enlistment. Using the compiled, deployment package (as can be downloaded from Codeplex or via WebMatrix) will drive you in lots of problems.
2. Orchard can run on either "normal" SQL Server or SQL Server Compact (single-file) databases.

What do you mean by a "local copy of the DB"? Each developer can test his instance using local SQL Server CE database - it's how I usually do that when working on custom modules.

If you have some preconfigured database you'd want your developers to use (because eg. it contains some sample data, themes setup and such) - each developer can copy the database from the server to his own, local SQL Server CE-based database. Migration can be easily done from Visual Studio, SSMS or WebMatrix.