Hi Syed,
Sorry that downgrading from SQL Server did not work for you, but I don't consider that a bug unless the same error happens in a SQL CE database created by mojoPortal, ie a clean installation.
I cannot be sure that the downgrade tool produced a correct result. The database is in an unknown condition as far as I know.
If you can produce a syntax error using a clean installation then post the details of the error from the mojoportal error log and provide steps to produce the error.
Best,
Joe