<p>Can anyone suggest which of the Redmine or Tracd would be a better option for project management? Currently I am planning to deploy it on a one project setup but plan to use it across multiple projects in the fututre. Which of the two is easier to deploy? I use windows. Any other software which is web based and comes with its own web server?</p>

<p>Thanks...</p>

If you plan to do multi-project management in the future, choose redmine. With trac you can have multi-project setups as well (having a separate environment for each project), but in the end it's a workaround. Redmine has builtin support for multi-project environments.
I previously used trac to manage my projects, but I switched to redmine. I didn't find any effective way of importing all my tickets and wiki pages. Redmine uses textile markup, but trac uses markdown, so I had a couple of troubles there.
Finally, I heard that redmine has some some issues on windows. I haven't tried running redmine on that platform so you'd better give it a try or google around.