Well, I'm sure you would have run into this issue on the JAS server. Wherever you got the WebSphere for your JAS server, you should also be able to get WebSphere Express 6.1.
Why wouldn't the JDELocal db be part of the package build? I'm having this same issue, but I don't have a JDELocal db at all. I need the local web dev client to work for testing, but I'm not able to describe the issue to our CNC guy.
I am having the problem where the JDELocal database is not being created either. I just found out that it is also not deleting the old one upon uninstall as well so the database that is there is really out of date. The other larger problem that I am having is that when I install a DV812 package it is placing a JDELocal_PS812.mdf and .ldf file in the data directory. I need to know where all of this is defined and how to repair it. E812 TR8.96.01.02.06