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Go for Access. Hosts charge more for disc space devoted to SQL Server, or have their plans stacked up to basically do just that, plus you can download the file if you put it behind a password. And you can set up forms and reports inside the one MDB file instead of having to write standalone .net interfaces for people.
SQL Server is a superior database engine, but in ways that it sounds like you won't be taking advantage of. If you were going to, I dunno, be the DMV for your state, you would need SQL Server 2005, but as outlandish as this might sound to the snobbier programmers (and I'm one of them!), Access is optimized for exactly what you want to do. It's less robust in ways you don't need, but easier, more comfortable, and if you already use Excel you'll be a lot more at home.
Believe me I'd like to recommend SQL 2005 Enterprise Edition, but in your case, Access is just better. By about 80 to 120 hours if you do it yourself ( DIY ) and have some idea what you're doing.
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