Outside guess: If your project is targeting a lower .NET version then the item won't appear.
Check the projects 'Target Framework' settings ......

>High Viv
>
>VS 3.5 SP1. There is nothing that starts with ADO.NET.
>
>>>Hi All
>>>
>>>I have been studding VS for a couple of weeks now and I am sorry if this seems to be a newbe question.
>>>
>>>I am using SqlAnywhere my database and I have found a tutorial by Sybase that I would like to try. Right out of the box it said to create a new c# project and the add a new item and pick ADO.NET Entity Framework. I tried that and the EF is not there. Any ideas why?
>>>
>>>Thanks.
>>
>>What version of .Net ?
>>IIRC you will need 3.5 SP1 or later ...... (http://www.microsoft.com/downloads/details.aspx?FamilyID=ab99342f-5d1a-413d-8319-81da479ab0d7&displaylang=en)
>>
>>UPDATE: They should probably have said 'ADO.NET Entity Data Model' - is that there ?