You must have to read - http://www.microsoft.com/Sqlserver/2008/en/us/compact.aspx

SUMMARY:
Top Features

  1. Free to use and distribute
  2. Supports desktops and mobile devices
  3. Small footprint for easy deployment
  4. Fully embeddable architecture
  5. No administration required
  6. Single file, code-free database format
  7. Support for ClickOnce, XCopy, MSI, CAB, and non-admin embedded installation options
  8. Supports all Microsoft Windows embedded, mobile, desktop, and server operating systems
  9. Supports a rich subset of Transact-SQL syntax and SQL Server data types
  10. Microsoft Visual Studio 2008 integration
  11. Supports ADO.NET, LINQ to SQL, LINQ to Entities, and the ADO.NET Entity Framework
  12. Supports multiple concurrent local connections

You must have to read - http://www.microsoft.com/Sqlserver/2008/en/us/compact.aspx

SUMMARY:
Top Features

  1. Free to use and distribute
  2. Supports desktops and mobile devices
  3. Small footprint for easy deployment
  4. Fully embeddable architecture
  5. No administration required
  6. Single file, code-free database format
  7. Support for ClickOnce, XCopy, MSI, CAB, and non-admin embedded installation options
  8. Supports all Microsoft Windows embedded, mobile, desktop, and server operating systems
  9. Supports a rich subset of Transact-SQL syntax and SQL Server data types
  10. Microsoft Visual Studio 2008 integration
  11. Supports ADO.NET, LINQ to SQL, LINQ to Entities, and the ADO.NET Entity Framework
  12. Supports multiple concurrent local connections

Thank you for your reply.

One more doubt we have, that is can we restore backup file taken by SQL Server (i.e.*.bak) to SQL Server Compact database or convert .bak file to .sdf file in any way? or any tools available for such activities?

Regards

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