Change project preferences
The first thing you should do is to tell your IDE (like Visual Studio) not to embed manifest into executables. Instead of native one, you need a custom manifest with SDK DLLs listed.
Go to [ProjectName] / Properties / Application and set the "Manifest" drop-down option to "Create application without a manifest".
Copy the files
Copy your application to some folder and create a subfolder named "DLLs". Place required SDK components (DLLs files) into the "DLLs" folder.
Check Redistribution Guidelines to find out what DLLs you should redistribute with your application.
Place MServer.exe.manifest (located in /bin/Manifests folder of your SDK directory) file near the MServer.exe.
It should be located in all subfolders where MServer.exe is placed. The required files are listed in Redistribution Guidelines.
Create a manifest file
Take a prototype manifest file:
..\Bin\Manifests\[Target Build Configuration]\[YourApplicationExeFile].exe.manifest
Rename it according to your application's .exe file name (Network Playback Sample.exe.manifest, for instance).
Place this manifest file in a folder where your application EXE file is located. And start your application - it should run without DLLs registration.