I\'ve created more projects using ReportViewer 2005 and 2008 in local processing mode than I can count on my hands. All Visual Studio 2005 or 2008 ASP.NET web forms projects
will not show up as sources in the DataSources drop down
I had the same problem some days ago. I solved it by installing SP1 for VS10. http://www.microsoft.com/download/en/details.aspx?id=23691