UPDATE[1]: Next time I need to read the "friendly" manual before saying that something isn't working. Everything is now working as expected!
UPDATE: I downloaded the LINQ preview and installed it. It actually installed real quick with no reported errors. The LINQ-Preview templates didn't show up so I went and copied them into my default templates folder. I opened up VS and copied some LINQ code into the a code file, pressed compile and received an error stating that: "System.Array does not contain a definition for WHERE". Sorry LINQ... you promised so much.
I've posted this question to the LINQ forum so hopefully there will be a response soon: http://forums.microsoft.com/msdn/ShowPost.aspx?PostID=90075
http://channel9.msdn.com/showpost.aspx?postid=114680
In this video Anders shows how to use LINQ and also explains some of the implementation that make it possible at a language and CLR-level such as: Extension Methods (lambda-like functions) and Anonymous Types. I'll be interested to have a play with the samples to get a better understanding of how I'd implement some of this stuff.
The possibilites behind Extension Methods seem very exciting to me and they are a very powerful concept.
Having just written a filesystem data provider (for SUB) I know what's involved in working with data outside of the database. Stop and think about where we get data from these days - WinFS, XML, etc - and you start to realize how cool it would be to have data model unification across each of these things.
I think that one obvious area that will benefit from this in the future is for writing strongly typed queries in the database using managed code but, as Dan Fernandez points out in the video, being able to run LINQ over any enumerable data means that the power of database queries can now be brought to a whole range of things such as querying the registry keys or other interesting things such as querying controls on a User Interface... think about that for a while!
Also, the other day, Joseph talked about his first impressions of XLinq which sounds as though it is an XML-specific flavour of LINQ:
http://jcooney.net/archive/2005/09/13/6731.aspx