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The main difference is the typed dataset has defined schema up front. A non typed dataset will infer from the data object that created it.
The main reason I used typed datatsets is if I am trying to populate a data grid (either aspx or desktop app) and i'm not guaranteed to have data returned or I want to have default data.
The datagrids will be expecting certain fields. If you have an untyped dataset that was populated from a query that did not return any values you may not get any schema information back. This can cause the datagrid binding to fail because it cannot find the table/fields to bind to.
I have used both of them and I have not noticed any performance differences.
Geo
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