why do you speak of browser ?
FYI WebServices is just a text based and type unsafe high level
communication protocol which is slow but multiplatform and run on CF (unlike
remoting).
Of course WebServices run over socket, but using WebService is like calling
a method, much abstraction on top of the socket, obviously
to answers your questions:
1> Sql server ce connect to Sql server
2> Sql server ce connect only to Sql server
3> Sql server, oops, yep you use a socket to connect to the web services,
but don't worry about it, it's all handled by the WebServices architecture
.....