Direct mode of connecting to server is preferred. It is faster, and supports almost every MySQL feature. Moreover, direct mode provides you with easier installation of your application (no need to ship libmysql.dll with the install pack) and makes you more independent of .NET environment settings at the target machine.
You can set Direct to false if you wish to use data compression (Compress), or to test new client libraries from MySQL AB.
Target Platforms: Windows 7, Windows Vista SP1 or later, Windows XP SP3, Windows Server 2008 (Server Core not supported), Windows Server 2008 R2 (Server Core supported with SP1 or later), Windows Server 2003 SP2