SQL Data Services underwent a massive change with the last CTP, eliminating the entity bag container, whatever they called it thingie and moved to a fully cloud-based relational model. Another major change was that it was given a new and more appropriate name: SQL Azure. You can get the CTP and have access to what I call SQL Server lite in the cloud. Since SQL Azure supports the fully relational model along with stored procedures and views, you can connect to SQL Azure with a regular old ADO.NET connection string like the following one, allowing you to code against SQL Azure with .NET the same way you did with plain old SQL Server.
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