This article is to give just one aspect of this problem.
You will get frustrated when you cannot see MySQL appears in the Data Source list when creating the Entity Model after installing the MySQL connector / Net.
The only thing I can say is your Operating System, Visual Studio, MySQL Server and MySQL Connector version need to match exactly. The following work for me.
OS: Windows 7
Visual Studio: VS 2012 Ultimate
After install you should able to do this.