Pierre Greborio has written an add-in for Visual Studio 2005 that will generate the proxy code for an Indigo service similar to the "Add web reference" function in VS. The add-in is a wrapper for some of the commands to svcutil.exe but it allows us to stay inside Visual Studio while we work. The add-in is posted at http://weblogs.asp.net/pgreborio/archive/2005/06/07/410662.aspx.
Update: now the add-in has been posted as a "GotDotNet" workspace, http://www.gotdotnet.com/Community/UserSamples/Details.aspx?SampleGuid=2b95225a-5c43-4246-bea3-d2315aae6da8.