When you remove the entity, you are just detaching it, which of course would not result it in being deleted from the datasource. What you want to do is mark it for deletion with Delete(), and then SaveChanges().
Some of our newer examples do show this in effect. For example, if you look at the Tour of Silverlight example, you'll find these methods in the view model:
private
void Delete(IEnumerable<Employee> employees) {
employees.ForEach(employee => employee.EntityAspect.Delete());
Save();
}
Sorry if the samples you have are out of date. You may want to download new versions from the DRC.
Yours,
Robert