Using "Entity Framework 1.0" (the version that was, until today, the most current) you have the right idea- get the Status from the database to set on the Task. Are you sure you're actually getting a Status entity with the syntax you're using above?
Step through your code to make sure the reference on the Task entity is being set to an actual materialized Status entity.
Dave Swersky
2010-04-12 16:22:06