So I went to generate a service proxy using Orcas Beta 2's svcutil.exe and received the following error.
After a quick web search it turns out that the this is a known Beta 2 svcutil.exe bug. The MSDN forum moderator (LorenzP) describes that the svcutil.exe is not signed correctly and provides a quick and easy work around (also included here).
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Open the VS command prompt.
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Browse to the bin directory of the windows SDK.
"C:\Program Files\Microsoft SDKs\Windows\v6.0A\bin" in my case.
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Type: sn -Vr svcutil.exe
Good to go.