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I want to design the SSRS 2008 (not sql server 2008 R2) based reports for Project server 2010. Reports should show , how many projects are going on ? tasks status by dates and all. How can do this ? I unable to understand what is relation ship in architectural level of SSRS and Project server 2010 ?

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For the functioning of SSRS is necessary to provide a source of data, it is crucial.

The Project server provide a source of information (how many projects are going on? Tasks status by dates and all), and to make SSRS report to a data source on the Project server.