Its been a while since I posted here. I have been working alot lately trying to finish my dissertation. Anyway I have been working with Reporting Services quite a bit recently. Its not too bad but kind of clunky. Anyway you need the latest version (SP1) running on the production server (do not install on your development box, the one with Visual Studio on it). You can get the redistributable here:
This is the upgrade (try this first it will complain if you need the other one)
http://www.microsoft.com/downloads/details.aspx?FamilyID=35f23b3c-3b3f-4377-9ae1-26321f99fdf0&displaylang=en

Full install
http://www.microsoft.com/downloads/details.aspx?FamilyId=E7D661BA-DC95-4EB3-8916-3E31340DDC2C&displaylang=en