I found my answer a minute later.
So here is the moral of the story:
"You need to read the help files better, at least finish the paragraph
you've started"
I need to copy the dll to "C:\Program Files\Microsoft SQL
Server\80\Tools\Report Designer"
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Now, I have a ***new problem***, once designer uses this dll, it is locked.
How can I release this lock without shutting down the VS.NET.
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SevDer
http://www.sevder.com
A new .NET Source For .NET Developers
If you close the report project/solution, VS.NET may release the lock on the
dll. If it does not, then there is no way around shutting down VS - sorry.
-- Robert

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This posting is provided "AS IS" with no warranties, and confers no rights.
>I found my answer a minute later.
>
[quoted text clipped - 32 lines]
>>
>> Can you please help?
SevDer - 31 Aug 2005 20:44 GMT
It simply does not release it :(
I hope this will be improved with the new version.

Signature
SevDer
http://www.sevder.com
A new .NET Source For .NET Developers
> If you close the report project/solution, VS.NET may release the lock on
> the dll. If it does not, then there is no way around shutting down VS -
[quoted text clipped - 40 lines]
>>>
>>> Can you please help?
SevDer - 31 Aug 2005 20:45 GMT
It simply does not release it :(
I hope this will be improved with the new version.

Signature
SevDer
http://www.sevder.com
A new .NET Source For .NET Developers
> If you close the report project/solution, VS.NET may release the lock on
> the dll. If it does not, then there is no way around shutting down VS -
[quoted text clipped - 40 lines]
>>>
>>> Can you please help?
Donovan Smith [MSFT] - 31 Aug 2005 23:54 GMT
Try this: Select "(Your project name) Properties" under the Project menu.
Click on Configuration Manager in the upper right corner of the dialog and
uncheck (if checked) Deploy. Next, select Start under the Debug menu and
you should see your report shown in a separate process. The secret here is
that if you never click on the Preview tab in VS or bring up the References
tab in the Report Properties dialog, I don't believe your assembly will be
locked. If you do happen to click on either, you will have to close and
restart VS to free the lock, sorry.

Signature
This posting is provided "AS IS" with no warranties, and confers no rights.
> If you close the report project/solution, VS.NET may release the lock on
> the dll. If it does not, then there is no way around shutting down VS -
[quoted text clipped - 40 lines]
>>>
>>> Can you please help?