I mis-spoke - I'll be making database calls via DevForce.
I decided to give myself one day to see what I could accomplish.
There's no web project to host the SL application - you create an empty sharepoint project that will be used to deploy the SL app to the Sharepoint server. A module item (in my case Module1) is created so that it can tell Sharepoint how/where to upload the application.
I copied the server side IdealBlade*.dll files to the bin folder.
At my breakpoint on the ExecuteAsync callback gave me a error:
"There is no endpoint listening on http://btitular4-w7/Module1/EntityService.svc/sl that could accept calls from this application. If running in Visual Studio, make sure CopyLocal=true is set for all IdeaBlade assembly references in the web project to ensure that these assemblies are copied to the bin folder. To check if the service is running, open your internet browser and navigate to 'http://btitular4-w7/Module1/EntityService.svc'. If the service page shows errors, these should help diagnose the problem with the service. If the service is running, then also make sure that the endpoint bindings match between client and server, and that the server's ClientApplicationType is either 'Silverlight' or 'Both'. Check the server's debug log file for more information."
I'm not sure how the url is being generated. The Module1 folder doesn't even exist in my web site.
I reviewed the following thread:
I'll try a few of kimj's responses to see where that leads me.
I think on the problems is that the xap files are not "exposed" as in a traditional web site. I believe they're stored in the SQL databases that Sharepoint manages.
I also came across some interesting posts related to Sharepoint 2010 and the .net 4 Framework - Sharepoint 2010 doesn't current support the .net 4 framework.
Entity Framework 4.0 requires the .net 4 framework - doesn't it?
So for today - it looks like I'll be creating the SL4 apps hosted in a "traditional" web site. I'll keep an eye out to see if/when Sharepoint 2010 supports the .net 4 framework.