as Clive Tong pointed out:
"I've added a bug report (RP-809) suggesting that we allow users to turn off the output of the CompilerGenerated types (or perhaps even do this automatically). Since these have usually been hidden in regenerated C# constructs, there is really no need to have them in the output files, and at the moment they cause these compilation errors."
If release 7 is capable of generating correct code with all the functionality that was in the originally compiled code I would prefer if one could switch off output of any CompilerGenerated sections so generated code has no errors.
I still don't understand why you output CompilerGenerated code? Is it in any way essential? What speaks against removing it?
Could you please let me know if there is a version of Reflector out with this feature so I can test it?