You are all correct! Microsoft have been a little careless. They didn't include a Report Designer with VWD Express 2008, even though it seems it was present in VWD Express 2005. It defeats the purpose of creating a database application if you can't create any reports for it.
I am pleased to say that I have successfully created a report for my project. There are 3 steps:
1. Contact the company that's hosting your SQL SERVER database, and they will tell you you need to purchase the Reporting Service facility (mine was only $60 for a year). This allows reports to be generated on the server for viewing and export by end-users.
2. Use SQL Server Management Studio to set up a connection to the Reporting Service remotely (see articles in MSDN online help). Took me a short while but I got there in the end. Presumably this allows you to run reports locally.
3. Purchase Visual Studio 2008 Standard or above, as it has a built-in Report Designer and Report Viewer Control. Fortunately I have a 90-day evaluation CD for Visual Studio 2008 Professional Edition (also downloadable as well), so I used that to create the report. I simply opened my existing ASP.NET project (which I created in VWD Express 2008) and I was ready to go. I have to say I'm quite impressed with it. In comparison to the learning curve for ASP.NET, it's actually quite easy!
And so, just over a day later, I now have a working report, and the capability to generate many more. The built-in report wizard does simplify the process too. I definitely recommend VS 2008 Pro, though I may be tempted to go for Visual Studio Team System 2008 Database Edition which seems to be all singing all dancing.
Thanks for all your input, it's really appreciated.
Tushar