TransACTION requires that Microsoft SQL Server Compact 3.5 Service Pack 1 be installed on your system.
You can download this from Microsoft at 

http://www.microsoft.com/downloads/details.aspx?FamilyId=DC614AEE-7E1C-4881-9C32-3A6CE53384D9&displaylang=en

If you have a 32bit system download 'SSCERuntime-ENU-x86.msi'
If you have a 64bit system download 'SSCERuntime-ENU-x64.msi'
If you don't know then you have a 32bit system.