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
SQL Server Compact
It's designed for embedded devices (i.e. Windows Mobile), but can also run on PCs. It's 2MB, runs in-process, single database file, that can have whatever name you like.
Its meant as a local high-performance database. You can't connect to it remotely, and doesn't support stored procedures, or user-defined functions.
But to answer your actual question: how to choose?
Choose what have management tools, with an easy, compatible, upgrade path when you outgrow it.