In my first post about Linq, there is a question about real world problems that it solves. Here are some examples:
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If you use a OR mapper today you have a couple of problems, for example not always talking as effective as possible with the database (reading to much, making to many calls). With DLinq you will have great ways to do it right.
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If you are using OR mappers, you probably also have some kind of Domain Model. When thing that you can do with a DataSet, that is not so easy solved with custom classes is to make queries over the object model. Say that you would like to filter out all order rows that has a value that is greater than a value, or containing products from one product category and so on. This is easily solved with Linq.
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Do you do XML programming today? Then you know that it's not as easy as it could be. The new model, not directly coupled to XLinq are easier. The real power of it though is released by combining it with Linq. If you have classes and you want to expose information defined in a Web Service contract, that often is not the same structure as your internal class hierarchy, then Linq will help you a lot on the conversion of these objects to XML messages.
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Another scenario could be that you have some data in your database and other data that you have gotten into a XML message by calling a Web Service. If you want to join these two different types of data with each other you will have a really hard time today, but it will be simple with Linq since it is possible to join information from different sources.