You can host the same WCF service in IIS, WAS, Windows Service or even a console application.
The decision of what to choose (typically IIS or WAS) depends on the clients and how they need to access the service. If the clients are in a WAN then they typically will be using the HttpBinding (so will have to be IIS) but if they are on a LAN ( like you
appear to suggest) then they will be using a NetTcpBinding so a console application will get you up and running in no time.
If you are going the datsets route then this
video should help. That said, WCF RIA services is one of the best productivity tools developed from Microsoft for a while, as it greatly simplifies the tedium of creating and maintaining services, but that is Silverlight only at present, though I think
WPF support is due in version -> next