I ran into this same problem when I was converting my MVC 2 app to MVC 3 and just to give another (clean) solution to this problem I want to post what I did...
IEnumerable<SelectListItem> producers = new SelectList(Services.GetProducers(),
"ID", "Name", model.ProducerID);
GetProducers() simply returns an entity collection of Producers. P.S. The SqlFunctions.StringConvert didn't work for me.