Unfortunately, you can't (easily) use the 2 project type of solution with VB, due to namespace issues. The generated models for both the Entity Model and Domain Model are not namespace-qualified in VB, so both models are defined in the project namespace, causing collisions.
Take a look at the "Silverlight Next Steps" sample for a solution structure which will work in VB. That sample isn't too far off the "4 Simple Steps" functionality, and actually represents a more realistic project structure anyway.