I have a Asp.net MVC 3 application which I want to give to a user to use without them having to host it in IIS to run.
What I would like to have is some sort of executable that they click or a service which will host the application and then they can use it from any browser on the network.
What are my options?
Have you looked into IIS Hostable Web Core?
This feature basically allows you to host the entire IIS functionality within your own process. This gives you the power to implement scenarios where you can customize entirely the functionality that you want "your Web Server" to expose, as well as control the lifetime of it without impacting any other application running on the site.
You can look into IIS Express http://learn.iis.net/page.aspx/868/iis-express-overview/ Although it is still IIS it's much lighter weight and might be what you need:
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