It was a moment of "palm" for me, but, given that I saw this exact behavior, and it did not immediately hit me, I thought that I would continue and publish this as an opportunity:
I saw this behavior when I had a TransactionScope for ReadUncommitted:
using (TransactionScope scope = new TransactionScope(TransactionScopeOption.Required, new TransactionOptions { IsolationLevel = IsolationLevel.ReadUncommitted })
and my Linq to SQL called a stored procedure to return the results of proc. The palm of your hand is that inside the proc itself you can specify the WITH (NOLOCK) SQL prompt, so there is no need to transfer the Linq query into SQL to the ReadUnCommitted transaction area. (At least in my case)
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