Actually, I think it is semantically (or how should I say that), not correct to create and dispose a datacontext in your repository.
I mean: if you open a new connection to the DB in each and every method of your repository, you're doing it wrong IMHO. This is too much fine grained.
The repository class has no knowledge of the 'context' in which it is being used. Your repository should not be responsible for opening / closing connections or starting and committing transactions.
Context is king, and the repository has no knowledge of the context in where it is being used. So, IMHO it is the responsability of the Application layer or service layer to open new DataContext objects, and closing / disposing them. (The same applies for transactions).
So, this is how I do it: (note that I do not use the Entity Framework, but I use NHibernate. I assume that the DataContext class in the EF is similar to the ISession in NHibernate):
using( ISession s = theSessionFactory.OpenSession() )
{
ICustomerRepository cr = RepositoryFactory.GetCustomerRepository(s);
Customer c1 = cr.GetCustomer(1);
Customer c2 = cr.GetCustomer(2);
// do some other stuff
s.StartTransaction();
cr.Save (c1);
cr.Save (c2);
s.Commit();
}
(This is not real world code offcourse; and it won't even compile since ISession doesn't have a Commit method. ;) Instead, the StartTransaction returns an ITransaction which has some kind of commit method, but I think you'll catch my drift. ;) )