I guess it depends on what you want your ORM to do for you. I wrote my own ORM code generating tool that I've been using while I waited for LINQ to come out because the existing ORMs either didn't do quite what I wanted or they were going to take weeks to learn to use. I started digging into nHibernate a while back and it's very robust but I think it's got a bigger learning curve than LINQ and the project configuration takes enough work that you might avoid using it for small projects.
There's no question for me that LINQ is my choice for ORM. And a benefit to LINQ is you can use it along with nHibernate if you want. So my suggestion is that you try LINQ and if you find that it doesn't do everything you need for this project then you'll still have it as an easy option for other ones. I also think that the integration with VS and the support of MS make LINQ a good choice.
I've got a LINQ book on order so I should know a lot more about it shortly.
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I'm thinking it would be a lot cheaper to go with mysql.
I've used both mysql and MSSql for a while and I'd never choose mysql if I had a choice. I've come up against too many limitations and dealt with enough corrupt mysql databases that it's just left a bad taste. SQL Express is free and it's robust enough that I run commercial sites using it. It limited to only using 1 processor and a max db size of 4GB but I haven't built anything that comes close to needing more than that. And again you've got all the builtin tools, debuggers, etc with VS.