I'm pretty fresh on CF so please yell at me if I'm doing something stupid.
I was running testce.exe directly in XP which (I see now from your answer) was never going to work. I have now run it from a WM5 device, WM5 emulator and PocketPC emulator and all gave the error
File or assembly name
'System.DataSQLite, Version=1.0.58.0, Culture=neutral, PublicKeyToken=1FDB50B1B62B4C84', or one of its dependencies, was not found.
which seems a little odd given these are definitely the 0.60 CF files.