Pocket PC Applications - What should I use???


I'm about to start developing my first pocket pc application for my final year project and I hope somebody can give me a bit of advice.  
The application is going to be a stock taking (inventory) tool.
The user will have a desktop interface where they will perform most of the work
Also there will be a handheld device for actually performing the stock take  
I will mimic a till system by using a simple gui on another desktop

So what I'd like to happen is :
 The user will download a list of current products to the PDA
 Perform the stock take (possibly using scanner attached to handheld)
 Upload the results to the desktop application where they can be compared the till system database (ie expected stock levels)
 A final stock level will be decided on and the till system database will be updated
 Other features on the desktop will include sales charts, stock level graphs, generate orders sheets, add new products

What i need to find out is where to start! I have A Dell Axim Pocket PC and I'm thinking about using vb.net for this and XML to handle the data but I'm not sure if this is best way to go. XML will be quite new to me but I'm fairly strong with SQL databses so I'm torn.

Anyone got some advice for me!
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Will you have a wireless network?
Just read your whole post you can Use SQL Server CE

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you can get lots of help on Pocket PC development on

I'd recommend compact framework using either c# or vb.net.
I'd look into opennetcf.org's web site tutorials and sdks.

I'd use SQL CE if you feel strong in SQL and can handle the simplier commands available.

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