SQL Server Compact is simply not designed to be used on a network. It is designed as a local cache / database storage. It was a design decision made by its authors ... if you need something that works for several users on the network - use a real SQL Server (Express or any other edition) ( marc_s
It is also considered a bad idea to expose the SQL server on the network - you may want to redesign your application so that the service provides limited functionality to users and calling databases (in this case, you can use a local SQL package, but still consider other releases that are more suitable for general data storage).
If SQL Compact is Required - Data Replication to a Local File - MSDN: Data Replication to SQL Server Compact .
For More Information on Sql Compact Strings - Connecting a C # Database to SQL Server Compact
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