Visual studio 2010 Client object model error "The type or name space name 'SharePoint' does not exist in the name space 'Microsoft' (are you missing an assembly reference?)"

I got this error few days back when i started creating .net clinet object model using VS 2010.

Well after a little research i got the answer in Visual Studio 2010 itself ... The framewrok for the application was selected as " .Net framework as 4.0" which was causing an issue.
Just re-create a project with .Net 3.5 and it would go away.

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