I am starting one POS (Point of sale) project. Targeting system is going to be written in C# .NET 2 WinForms and as main database server We are going to use MS-SQL Server. A
I'm doing much the same thing: central server probably running MS SQL server and distributed systems though these are running Linux. We opted to do the data transfer in XML and use sqlite on the distributed systems.
It's early days but seems to be going well so far.
There are .net bindings for sqlite.
The reason we chose sqlite were: