I am using EF 4 to retrieve a list of Employees.
public ContentResult AutoCompleteResult(string searchText)
{
List list = Employee.GetAll
I had a variation on this problem. The data context was not closed, but the Object context instance has been disposed error was getting thrown anyway.
It turned out that the object had a self referential foreign key (ie the foreign key referred back into the same table). Accessing the navigation property in when it refers to a null, you get the objectcontext disposed exception instead of, say, a null pointer exception.
eg:
var a = myObject.Name; // works because myObject still has open object context
var b = myObject.SelfReference; // throws objectcontext disposed if SelfReference is null