I'm getting a DLLNotFoundException in the simulator.
Unhandled Exception: System.DllNotFoundException: /Developer/Platforms/iPhoneSimulator.platform/Developer/SDKs/iPhoneSimulator3.2.sdk/usr/lib/libsqlite3.dylib
at (wrapper managed-to-native) Mono.Data.Sqlite.UnsafeNativeMethods:sqlite3_open_v2 (byte,intptr&,int,intptr)
at Mono.Data.Sqlite.SQLite3.Open (System.String strFilename, SQLiteOpenFlagsEnum flags, Int32 maxPoolSize, Boolean usePool) [0x00040] in /Developer/MonoTouch/Source/mono/mcs/class/Mono.Data.Sqlite/Mono.Data.Sqlite_2.0/SQLite3.cs:119
at Mono.Data.Sqlite.SqliteConnection.Open () [0x0021a] in /Developer/MonoTouch/Source/mono/mcs/class/Mono.Data.Sqlite/Mono.Data.Sqlite_2.0/SQLiteConnection.cs:876
This is on Lion with Xcode 4.1, iOS 4.3, Mono 2.10.3 MonoDevelop 2.4.2 and MonoTouch 220.127.116.11. MonoTouch seems to be looking for it in the iOS 3.2 simulator, which I don't have on this machine. Nothing is set for 3.2 in the project. Work-around is just to create the 3.2 directory and copy the libsqlite3.dylib from the 4.3 sdk.
This has been fixed already and will be in the upcoming 4.1 release.