UPDATE
In the last update I could use SQLite for unit testing but not in an application run. That problem has now been resolved by modifying config to allow [loading from a remote assembly](http://msdn.microsoft.com/en-us/library/dd409252(VS.100.aspx)
<runtime>
<loadFromRemoteSources enabled="true"/>
</runtime>
in addition to enabling mixed mode loading (see Mauricio's answer below), using the latest SQLite dll here at Source Forge, and cleaning out the GAC from a previous install of SQLite
Cheers,
Berryl