wyUpdate.exe and the client.wyc file have to be outside of your assembly. There's no way around that. Just make an installer for your app. See step 5 in the step-by-step walkthrough.
updater with single exe
I have a very simple, single, WinForms .exe file that I would like to keep up to date. I can keep it a single .exe using ILMerge to merge in AutomaticUpdater dll, but is there a way I can get it work without also dealing with a config file or updater.exe?