While it is technically possible to redirect installation of NETCF onto storage card via standard Active Sync/WCELOD capabilities, it won�t save precious RAM on device. NETCF files have to be in \Windows folder in order for NETCF to function properly.
If NETCF is installed to storage card, NETCF files will be initially deployed to it. However, at some point they would moved to \Windows folder taking out exactly the same space as normal installation would.
In some cases attempt to use storage card would lead to installation failure due to some subtle storage card issues. Thus it�s not recommended to install NETCF V2 to storage card or embedded storage and there are no benefits of doing so."