You indeed need an assembly redirect, and I'm not sure if compact framework even supports that (probably not).
There are more problems at the moment with CE 3.5, as our DQE generates anonymous parameters in the queries, but 3.5's parameter binding engine is broken in some queries.
We will address this soon, in v2.6, though at the moment you're out of luck and you've to use SqlServerCe v3.1 instead of 3.5.
We officially don't support CF.NET 3.5 yet. It depends on how easy we get our code working on cf.net if we'll support it at all in the future or if we'll abandone cf.net altogether.