The latest version of the Report Builder tool from Microsoft is 3.0. This tool can be used to

  1. Design and Deploy Reports from a development machine
  2. Edit reports on the Report Server

1. Developer's machine: When deployed on a developer's machine, the tool can be used to design the reports and deploy them directly to any of the servers that are accessible. The developer should have deploying rights on the server and the folder selected.

2. Server: When the application is deployed on server, and the Report Server configuration updated, the tool can be used by anyone with publishing rights to make changes on the server.

There are some new controls that are available on Report Builder, and these are not available from BIDS. Some of the controls are Gauge Control, Maps Control, etc.

More information on Report Builder can be found on MSDN