Mark Talks About Developing for Windows CE 4.2 with .NET Compact Framework v2 SP1
.NET Compact Framework v2.0 SP1 includes support for Windows CE 4.2 based devices. To date, Visual Studio 2005 does not provide managed 4.2 projects nor is there any support offerings for developing solutions targeted at 4.2 devices. The good news is the 5.0 projects work just fine with one exception, debugging is currently broken on x86 based devices. Below I outline the steps in creating and debugging a .NET Compact Framework v2.0 SP1 Hello World application.
Read more here.