Symptom: When attempting to do the Create Mobile Database step under Mobility > Windows Mobile / CE (Batch), the following two errors are received, indicating a problem with sqlceme35.dll:
Problem: The SQL Server Compact Edition files need to be reinstalled.
Solution: Download Microsoft SQL Server Compact 3.5 Service Pack 2 from this link:
When you run the installer(s), if it offers the option to Repair or Remove, choose to Remove and let it uninstall the existing bad files, then run the installer again to install clean files.
For 64-bit versions of Windows Server, first install the 32-bit (x86) component, then install the 64-bit (x64) component. For 32-bit versions, install only the 32-bit component.