It is free when used stand-alone, if you connect to a Sql Server using RDA,
Merge Replication etc then you need to purchase client licenses for your
devices (this will depend on how your Sql server is licensed, per user or
per processor etc)
Visual Studio 2003 ships with Sql Server Ce which you can add to your device
simply by adding a reference to System.Data.SqlServerCe within your project.
To deploy the engine with your finished CAB files you'll find the installer
in the processor specific folder in the Visual Studio folder tree:-
C:\Program Files\Microsoft Visual Studio .NET
2003\CompactFrameworkSDK\v1.0.5000\Windows CE\wce300\arm\sqlce.ppc3.arm.cab
For Pocket PC 2000/2002 ARM based devices.
Peter