The Version Installer file will always create/update the ODBC DSN specified in the install. So the installation-specific database connection settings will need to be entered during the install.
There are two ways to do this.
1. The user enters them in the Version Installer Setup the Local Database dialog
2. An administrator writes a batch file or script file to pass the settings on the MSI command line. For example:
Msiexec.exe /i MYAPP_v1.0.0_en-us.msi DBII=MYAPPDSN DBSV=myservername\sqlserver DBAS=mydatabaseinstance.