I am looking for an easy example or blog post that shows how to implement Actions in WCF data services version 5.0 using the EF Code first approach
The example on codeplex is not so clear as to where the Action method need to be declared. is it in the service class or the Data class?
I am looking for a way to call operations other that can accept an entity type and possibly return an entity type. Do these need to be done via actions or Operations?
Take a look at Alex James' recent blog posts.
This part 3, which is probably most applicable to your concerns:
Service Operations cannot take an entity as a parameter. In 5.0, Actions can be bound to a particular entity, which for all practical purposes means "Using it as a parameter". Other parameters on actions must be primitive or complex.
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