>>As for reporting, the message from Microsoft is to upgrade from SQL Server 2000 or SQL Server 2005 Express up to SQL Server 2005 which includes SQL Server reporting services, or use a non-Express version of Visual Studio 2005, etc.
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>Are the reporting tools in VS2005 based on SQL Reporting Services or Crystal? If SQL, can they be used with any data source?

SQL Reporting Services is part of SQL Server, with a new version in SQL Server 2005 coming out in a few weeks. Crystal Reports is still included in Visual Studio in the new 2005 verison coming out in a few weeks, but I'm not sure which version it is in (what level), but that will probably be included in annoucements on November 7th which is the date of the very massive world-wide launch and release of VS 2005 and SQL Server 2005.