From what I can see the .NET drivers for SQL CE 3.5 and below do not support System.Transactions. Has this changed for the new version of SQLCE (version 4)?
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No, no changes there... http://msdn.microsoft.com/en-us/library/bb896149.aspx

ErikEJ
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The link that you included only refer's to SQL CE version 3.5. I cannot find any specific references for version 4. – Adrian Russell Jan 20 '11 at 09:12
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There are no changes for version 4 – ErikEJ Jan 21 '11 at 16:19