I ran into this issue last night when I was prototyping with WP7.1.
I have a class library that I am using as a repository for all my data access. In this class library I am making a REST call and grabbing the XML. Everything is working up to this point. From the Stream returned I am turning it into an XElement. Then when I do something like XElement.Elements() or XElement.Descendents() I am receiving the following exception when I look at the System.Collections.IEnumerator.Current member. (I am not sure why it says this but that’s what I see when I expand the object)
'System.Collections.Generic.IEnumerable<System.Xml.Linq.XElement>' does not contain a definition for 'System' and no extension method 'System' accepting a first argument of type 'System.Collections.Generic.IEnumerable<System.Xml.Linq.XElement>' could be found (are you missing a using directive or an assembly reference?)
At this point I think to myself that it is a namespace issue so I write the following code and receive the same exception.
var f = new XElement("Foo", new XElement("Bar", 1));
var b = f.Elements("Bar");

Any help on this issue is greatly appreciated. I really want to use linq-to-xml instead of a bunch of loops to construct my objects.
I guess this was working as expected with the deferred execution.
When I call a
ToListor something similar on the collection, I get the expected results. I guess there must be a bug or something in this instance when I try to evaluate the expression during a breakpoint (the aforementioned exception). I guess I was trusting the debugger too much 🙂