Hi!
It shouldn't be a licensing problem, and you don't have to have LabView installed on the PC in which your application will run, installer is meant for this! Otherwise, if you had LabView on target PC, it would have been enough to run the VI on the other PC (provided you've the same libraries....).
I use NI Developer Suite 7.1, so in LabVIew 7.1, you have
tools --> Build application or shared library ...
Go to "installer settings", check "create installer", and in "advanced properties" check for what you need for your application to run.
I only have an "evaluation version" of LV 8.5, so I cannot grant you that I can help you, but I'm doing a little check... please, let me know what LabView do you have!
graziano