.. ance<T>() where T : Foo, new() {

So I went to generate a service proxy using Orcas Beta 2's svcutil.exe and received the following error. 

After a quick web search it turns out that the this is a known Beta 2 svcutil.exe bug.  The MSDN forum moderator (LorenzP) describes that the svcutil.exe is not signed correctly and provides a quick and easy work around (also included here).

1. Open the VS command prompt.
2. Browse to the bin directory of the windows SDK.
   "C:\Program Files\Microsoft SDKs\Windows\v6.0A\bin" in my case.
3. Type: sn -Vr svcutil.exe

Good to go.