Linq-to-Entities Include method not found

Yes the method is build into EF but it is not available on IQueryable interface. It is available on ObjectQuery. If you want to call it on IQueryable you must create your own extension wich will convert current query to ObjectQuery and perform Include. Something like:

public static IQueryable<T> Include<T>(this IQueryable<T> query, string property)
{
  var objectQuery = query as ObjectQuery<T>;
  if (objectQuery == null)
  {
    throw new NotSupportedException("Include can be called only on ObjectQuery");
  }

  return objectQuery.Include(property);
}

Or you must use Entity Framework Feature CTP5 where such extensions are already available.

I was also getting this error and resolved it by adding the following reference:

using System.Data.Entity;