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The Common project contains code that's executed on both the client and server. This project is a plain Silverlight 4.0 class library project. However, the initial assembly references are set to those belonging in the portable class library subset.
Portable class libraries were introduced in .NET 4.0. These types of libraries can run on multiple .NET Framework platforms. In LightSwitch, the assembly built from the Common project is called from both the Silverlight client and ASP.NET server applications.
You'll find a UserCode folder in the Common project. This folder contains the user code that you write for each entity. For example, the Created, Changed, and Compute methods are saved here. The GeneratedArtifacts folder contains a series of autogenerated code for each entity.