The snapshot folder holds the snapshot files that contain the schema and data for published tables. To create the subscription on the smart device, the Microsoft SQL Server Compact 3.5 Replication Provider uses the Microsoft Internet Information Services user account to read these snapshot files. The snapshot folder is made accessible to the IIS user account through a UNC path or FTP virtual directory. You then control access to the snapshot folder by assigning file system access permissions to it.
SQL Server 2008 R2