Great news for anyone planning to install SharePoint on SQL Express. Make sure to first install the latest version since SQL Server 2008 R2 Express allowed for 10 GB database. Note that the database limit was increased to 10 GB from the earlier 4 GB limit. After SQL express is running then install SharePoint in farm and do not use standalone. But there is a registry entry you need to make.
http://mytechweblog.blogspot.ca/2012/05/search-server-2010-vs-sql-server.html
Do you need to convert to SQL? Geoff Schaller has a good comment on
http://technet.microsoft.com/en-us/library/cc262018(office.12).aspx
More References
http://social.technet.microsoft.com/Forums/en/sharepoint2010setup/thread/0deed03e-376b-4540-87f7-bfd818ebd8fe
http://erikej.blogspot.com/2011/01/comparison-of-sql-server-compact-4-and.html
http://social.technet.microsoft.com/Forums/en/sharepoint2010setup/thread/870dde9a-ea60-4133-82fd-f6d25385f035
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