I think you might mean OLE DB.
For ver 8.5/9. the principle is the same.
8.5= Click Database, Add Database to report,
Under the More data sources, click OLE DB
Make a new connection,
Now For the Provider Tab pick MS OLE DB Provider for SQL Server, Click next(or the connection tab)
Type in the server name/ip adress for 1) Select or enter Servername, 2) Enter password, or if your can authentication to sql server then choose Integrated.
3)SPecifiy the db.
thats it.
If you use Integrated security, then the person who runs the report has also have a account on SQL server with the correct credentials.
Fred