Well does it?
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SQL Server Compact Edition 3.5 SP1 supports Entity Framework. Moreover, this blog post claims the Entity Framework supports CF in Visual Studio Entity Designer.
However, I couldn’t find any way to create new .edmx file. And while I could open the Entity Designer after copying and .edmx from another project, and get the model of my database, I couldn’t get it to compile.
So, I would say that Entity Framework does not support CF yet.