It is possible to connect to SqlServer from an emulator.
You'll need to provide a sample of your connection
string and information about your machine name, the
server name, db instance, and network topology to
answer this question completely, but in many cases,
referring to the SqlServer by IP address in your connection
string will work when referring to it by name will not. I'm
assuming you have the networking in your emulator setup
correctly as well.
--
Darren Shaffer
..NET Compact Framework MVP
Principal Architect
Connected Innovation
www.connectedinnovation.com