Depending on the queries, you may need to change some of them. MS SQL and Pervasive.SQL are two different products and do have different extensions to the SQL syntax but the basic syntax is going to be the same. For example, a "SELECT * FROM TABLE" will produce the same data from both Pervasive and MS SQL. The datafiles themselves are different so a conversion will need to be done to get data from one system to the other. They can run on the same machine (although, you'd want to make sure the system can handle both).
There's a very good white paper on Pervasive's site (http://www.pervasive.com/support/whitepapers.asp) called "Aberdeen Cost-of-Ownership Database Study Proves Pervasive.SQL Still The Clear Leader" that talks about the differences between Pervasive, MS SQL, and even Oracle.
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