Dorin,
I do know of SQL Server Compact Edition {and have posted before about its (current) lack of stored procedures ;-) } and agree it looks like a suitable replacement for dbfs, especially with its security features. But it still doesn't come close to VFP's persistent auto-disk-spanning resultsets. My understanding was that MS saw this as a priority for Linq. There are posts to this effect from MS many months back.
"... They ne'er cared for us
yet: suffer us to famish, and their store-houses
crammed with grain; make edicts for usury, to
support usurers; repeal daily any wholesome act
established against the rich, and provide more
piercing statutes daily, to chain up and restrain
the poor. If the wars eat us not up, they will; and
there's all the love they bear us."
-- Shakespeare: Coriolanus, Act 1, scene 1