You have use the START connection parameter to start the UltraLite engine with the following definition; however, the client returns SQLE_UNABLE_TO_CONNECT_OR_START.

START="\Program Files\uleng12.exe"

The location of the quotes is incorrect.

For this parameter to work, the first quotation mark must follow the \ character. For example, you can delimit spaces in this path as follows:

START=\ :Program Files\uleng12.exe"

or

START='"\Program Files\uleng12.exe"'