I use ChannelFactory along with MetadataResolver.Resolve method. Client configuration is a bother, so I get my ServiceEndpoint from the server.
When you use ChannelFactory(Of T), T is either the original contract that you can get from a reference in you project or a generated contract instance. In some projects, I generated the code from a Service Reference because I could not add a reference to the contract dll. You can even generate an asynch contract with the service reference and use that contract interface with ChannelFactory.
The main point of using ChannelFactory for me was to get rid of the WCF client config information. In the sample code below, you can see how to achieve a WCF client without config.
Dim fixedAddress = "net.tcp://server/service.svc/mex"
Dim availableBindings = MetadataResolver.Resolve(GetType(ContractAssembly.IContractName), New EndpointAddress(fixedAddress))
factoryService = New ChannelFactory(Of ContractAssembly.IContractName)(availableBindings(0))
accesService = factoryService.CreateChannel()
In my final project, the availableBindings are checked to use net.tcp or net.pipe if available. That way, I can use the best available binding for my needs. I only rely on the fact that a metadata endpoint exist on the server.
I hope this helps
BTW, this is done using .NET 3.5. However it does work also with 4.0.