Doubt on creating local database on Sql Server CE

i'm trying on create a local database for Pocket PC 2002 Emulator.

i'm using C# language with .NET Compact Framework for my application.
By the way, i refer to the tutorial to try on creating the database.
However, when i try to run my program, it is compiled successfully. It can run the emulator and display the form well.
However, when i click on "create database" button, an error message is prompted.
Error subscribe to database
An incorrect or unsupported HTTP function call was made.
[xx(]

i try to install Microsoft Loopback Adapter on my development machine and set my Pocket PC 2002 emulator to the IP that i assigned when installing the Microsoft Loopback Adapter.
I'm using different IP address for my emulator and my desktop as well.

Right now, i still confuse. Do i need to install Microsoft Loopback Adapter and assign different IP address for emulator and my desktop server in order to do the merge replication. I found out most of the tutorial online about merge replication do not mention about the IP address issue.

I would like to appreciate your opinion and guides...

i hope that i can get some guide here..since i crack my head for long time...[xx(]

thanks...