While creating the application definition file for BDC ,can we have multiple methods in same entity.
I keep getting error that
Application definition import failed. The following error occurred: Method Instance of Type 'Finder' already exists on Entity with Name 'dbo.UserInfo' and Id '1059'. Parameter name: type Error was encountered at or just before Line: '85' and Position: '5'

Application definition file for BDC
xplosiv_1
If I understand your question correctly, then the answer is yes. You can have multiple methods in an entity. The syntax is something like:
<Entity>
<Methods>
<Method Name="Method1">
</Method>
<Method Name="Method2">
</Method>
</Methods>
</Entity>
Within each method, you can have 'Finder' method and 'Specific Finder' method to return either a list of record or a specific record.
BDCMetaMan is a good tool to get yourself started into authoring metadata file for SQL server data source and it is free.
SVBG
You can only have one Finder method per entity, but you can have GenericInvoker methods! :-)
Check the MOSS 2007 SDK as it's well documented in there
HTH
Nick