The pound-sign (#) indicates that this is conditional compilation. The compiler will only include the code inside the #if .. #endif if the expression evaluates to true.
There's generally no need for it in .NET (although there might be a few special cases).
Most of the time it was used to do a build with extra debug code in there. But since .NET now does this automatically with the Debug object, there's no need to do that.
Merlyn2450, it's funny that you mention that because that's exactly what this project is: For the .Net CF. Why is it useful, though (forgive the ignorance.
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