I know that there is SSRS and have studied up on SQL2005 and how it consumes datasets. I've Googled as to whether SSRS can consume EF data, but don't yet understand the responses. Can SQL2008 R2 consume EF data?

Jeff, SSRS provides the ability to write custom data processing extensions as a data source, for instances where SSRS doesn't have a native data source (unless something has changed, I don't believe SSRS R2 has a direct source for EF data). But you can write a data processing extension. Here's an overview of the extensions architecture:

http://msdn.microsoft.com/en-us/library/ms152816.aspx