VS.NET: Cannot implicitly convert type ‘SomeType[]’ to ‘System.Collections.ObjectModel.ObservableCollection<[Namespace].SomeType>’

There seems to be a known bug / issue in Visual Studio 2010 RC when dealing with Service References (to a WCF Service). The Collection Type of the Service Reference is set to custom and you start getting compilation errors like:
Cannot implicitly convert type ‘SomeType[]’ to ‘System.Collections.ObjectModel.ObservableCollection<[Namespace].SomeType>’   
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