Hi,
I'm pretty sure GoDaddy just requires the typical manual installation, it is a Medium Trust environment but our packages for MS SQL are already pre-configured for Medium Trust.
As far as going back and forth between your local machine and the production installation, I would caution most people against doing that, once a production site has been deployed data should only go one direction by getting a copy of the data from production and using it to test locally. I would not go back and forth, the production database is the authoritative data, the local copy is for testing only.
Things like:
Users registering on your site
Users posting in your forums
Users purchasing products from WebStore
are all data that comes in the front door on production and you would lose that data if you then pushed the local database up to replace it.
Maybe for a brochure site where users can't register or interact with your site it would be ok, but if you edit content locally and push it to production then the production search index will not be updated unless you rebuild the search index again after each update of the database on production.
Best,
Joe