The biggest mistake people make when using LINQ is the same as when people try to use any sort of technology that lies on top of a technology that they don't have any good grounding in.
If you can't understand proper/efficient DB querying, you will screw up with LINQ.
If you can't understand the basic fundamentals of ADO.NET and data access, you'll probably screw up.
People think that by using LINQ it will allow them to coast by, but it won't.