>If you are building a .exe what else do you doing with the reports and labels? Not include the report or label. If thats the case then what is the use of building them in the first place. The user won't have access to the actual report files, only the compiled code. I don't understand...

The program can still call and use any files not included in the exe, they just have to be present on disk. The advantage is, your app can be replaced in modules. This might seem trivial, but if you have a 5.5 MB exe and have to recompile because a client decides she want her titles underlined, you will quickly see the advantage of excluding reports and labels.