Often solutions are simple, but the steps finding that simple solution can take a while.
This time, good friend Danny Thorpe found out the hard way using the joungest Community Technology Preview version of Entity Framework 4, he writes:
I don’t claim to know why, but after a day of permutations and combinations, this is what I found cleared the problem for me.
The solution for his problems – all sorts of stranges errors when using DropCreateDatabaseAlways in the Entity Framework – is simple: make sure you don’t have any other connection to your underlying database open.
–jeroen
via: Weird Errors With EF4 CTP5 Code First? Close All Database Connections » Danny Thorpe.
The Wiert Corner - irregular stream of stuff 