>We want to set up 3 different servers with MSDE and sync them using replication. Using merge replication, is it possible to have changes distributed from all 3 servers. I guess what we are asking is if it is possible for MSDE to be both a subscriber and a publisher.

Don't know if you can do that with MSDE or not, but you can with SQL Server. Even then, it didn't work very well, and if you get out of sync, it's a royal mess to try to get synched back up. We gave up on letting SQL do it, it was just too fragile.