http://bugs.winehq.org/show_bug.cgi?id=32280
--- Comment #2 from Dan Kegel dank@kegel.com 2013-09-29 15:00:48 CDT --- Still happening in wine-1.7.3, except that sometime between 1.7.1-158-g88c2a18 and 1.7.3, the "SQL Server Compact" install error disappeared.
A workaround is 'winetricks dotnet40 winxp'.
(And before 1.7.3, doing that before installing also fixed the install failure.)
(Without winxp, the app won't find Application Data in c:\users$LOGNAME; a symlink to Local Setings/Application Data works around that, if you ever run into it.)