For years MS has bundled in Crystal Reports with Visual Studio. They have
continued to do this even as they allow creating reports with their
reporting tool (Reporting Services). They are two different products with
two totally different lineages. RS started out as a server based reporting
product using a service oriented architecture. Crystal Reports started out
as a client/server reporting tool and moved into a server based reporting.
RS added a local mode using the control that shipped with VS 2005.
Reporting Services ships its own development environment if you are using
the server based product (part of SQL Server).
I gather VS 2008 has improved the ability to use the RS control to create
reports over that in VS 2005.
I have no idea what is meant by an ASP.Net reports web site unless they mean
a web site to use the VS reporting services webform control (they ship with
both a webform and winform control).
Anyway, Crystal Reports and Reporting Services both have their plus and
minuses. If using the complete server based product and you already have SQL
Server then the licensing for Reporting Services is much cheaper (RS is part
of SQL Server). Certain types of reports are easier in RS and others are
MVP SQL Server Reporting Services