>I am using SQL Server 2005. I don't want to open cursors and process a complicated report on the Client system. What would be a good way to process a VFP report on the server and then pass only the resulting cursor back to the client?

If you call stored procedure (to process report data) then it returns on client (VFP) side one cursor for each Select statement that you use within this procedure, i.e. if you have Select that returns recordset needed for the report then client will receive it.