No, Fiddler doesn't "Add hooks" that require administrative permissions. You can simply copy the Fiddler folder from the Program Files folder onto the desktop of whatever user you want and launch it directly from there.
The only thing that you don't get in an "XCOPY" install is the Fiddler-related buttons in your browsers (e.g. IE and Firefox) because those are set by the installer, and if you don't run the installer, you won't get the browser extensions.