I believe I have found a fix to a similar issue, and I wanted to share. I am using VS2008, and ALL generated DataSource Controls in design view say: "Error Creating Control ..."
I found a fix: Here
In DataRepository, GetDesignTimeConfig, change
EnvDTE80.DTE2 dte = (EnvDTE80.DTE2) System.Runtime.InteropServices.Marshal.GetActiveObject("VisualStudio.DTE.8.0");
to
EnvDTE80.DTE2 dte = (EnvDTE80.DTE2) System.Runtime.InteropServices.Marshal.GetActiveObject("VisualStudio.DTE.9.0");
Now, to fix the EntityGridView, you have to but a try catch around the OnInit and OnSorting events in the EntityGridView.cs.