A: Unfortunately it is not possible.
Local reports (rdlc) are only supported by
Silverlight Viewer for Reporting Services 2005. This viewer is only compatible
with SQL server 2005.
The reason is that Microsoft corp. has closed all the interfaces for
local rendering (from public to internal) in SQL Server 2008.
So we can't implement
local rendering for this version.
If Microsoft corp. opens the interfaces in future versions we will immediately make this feature available .