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Now, the SQL Server 2005 Compact Edition has been released and can be freely downloaded from here.

This is an awesome technology to add database-capabilities to your applications, without having to rely on an installed database engine or the administrative permissions to install one. Simply add the libraries that make up SQL Server 2005 Compact Edition to your project, add the database file and xcopy-deploy all to the target system. No installation, no registration, no administrative permissions. Nice!

Developers, consider installing the Microsoft SQL Server 2005 Compact Edition Tools for Visual Studio 2005 Service Pack 1 (what a name!) which updates the Smart Device Development components in Visual Studio 2005 SP1 with the SQL Server 2005 Compact Edition design time UI/Dialogs, device CAB files, and includes new features like Click Once support.