Try renaming the layer file created to have only one period. I recall having issues with that earlier. In your screenshot I see two.
Hi Jamal,
If you are still having issues, check to make sure the v3.1 of the "Microsoft SQL Server Compact Edition" is installed. It should be located in c:\Program Files (x86)\Microsoft SQL Server Compact Edition\v3.1
When I installed 10.2 on a clean (ArcPad not previously installed) machine, it did not install v3.1. If it is missing, you can either copy the folder over from another machine (have not tested) or install an older version of arcPad (10.0) and the put 10.2.2 back on.
I am not using AXF so not sure it it related, but if did elimated another related issue (annoying pop-up on start-up).
Jamal,
You have to create a layer from Feature Service not Map Service, you can access feature service by signing in to Arcgis Server as USER not Admin, then you can create a layer from it and use it as input for "Add feature service URL to AXF tool". This is shown below.
[ATTACH=CONFIG]34904[/ATTACH]
[ATTACH=CONFIG]34905[/ATTACH]
[ATTACH=CONFIG]34906[/ATTACH]
After doing this the "Synchronize data with ArcGIS Server" will be available. But, I have a problem with it; when I start synchronizing the error in the below thread appears!
http://forums.arcgis.com/threads/114031-Error-with-synchonize-data-with-ArcGIS-Server
As Hani mentioned you have to use a user connection not an admin connection. You are creating a map service layer not a feature service layer when you use the admin connection. Try the user connection to your arcgis server and then you can pick the feature service.