The Entity Designer in VS 2010 has a number of new extensibility points. If you are interested in writing extensions for the designer, you should definitely check out the ADO.NET Entity Data Model Designer Extension Starter Kit over on Code Gallery. When
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Last summer, the senior developer on the Entity Designer team (Mike Kaufman) wrote a series of blog posts over on the ADO.NET team blog about how the designer uses the public APIs found in System.Data.Entity.Design.dll to do its model generation and code
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