Exposing EntityFramework 4 entities as IList instead of IObjectSet?

Customers.ToList() is the culprit. ToList executes the query and copies all the items from that query into a new collection object. This new collection object does not provide the tracking capabilities that ObjectSet has.

You seem to be missing a Repository in all of this. The Repository is usually what handles the conversion from ObjectSet to IList (or, in most cases, IEnumerable or IQueryable).

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