We currently have SharePoint 2010 Standard with SQL Server 2008 R2 Enterprise, and Visual Studio 2010 Ultimate for development. As I understand it, to be able to create reports from SharePoint lists I would need to use SQL Server Reporting Services. As I understand it SSRS 2008 isn't compatible with VS 2010.
What other options do I have to create reports from SharePoint lists?
That's right, SSRS "Business Intelligence Development Studio" (or BIDS) project files won't work with the Visual Studio 2010 shell. But there is no reason you cannot simply use the Visual Studio 2008 shell, which is what the SQL Server client tools should be installing for you. Just be sure you install the SQL Server Client Tools into the DEV environment, and you should have everything you need to develop the reports. Where it gets a bit clunky, is if you want to package them up and deliver a Feature for deployment, but you don't have to deploy that way. You could simply upload to a SharePoint Report Library manually. Just depends on your change management process.
To address your follow up questions (posted as comments):
The SQL Server Client Tools are part of the SQL Server installation media. One of the very first options in the wizard is to choose which components (SSAS, SSRS, Database Engine, Client Tools, etc) to install. Assuming you already have the DB Engine and SSRS installed, you will need to rerun installer and select the Client Tools only. Though written for SQL 2008 (not R2), this posting may be helpful: http://www.mssqltips.com/sqlservertip/1807/sql-server-2008-client-tools-installation/. At least to get the basic jist anyway.
I am pretty sure that SSRS will integrate with SharePoint Foundation, so you should be fine with SharePoint Server 2010 Standard. You may not get a few of the OOB BI features (like a site template dedicated to SharePoint), but I believe the SSRS Add In (which is free) will install all of necessary Central Admin, Content Types, List Templates, etc needed). This article seems to back this up: http://technet.microsoft.com/en-us/magazine/ff686706.aspx
If you have an existing SharePoint installation, you can download and install the add-in at any time. The add-in installation process adds the necessary pages to the SharePoint Central Administration as well as the new Report Server content types for existing SharePoint Libraries in sites using the Business Intelligence (BI) Center site template.
On the SharePoint side, you can configure integration on either SharePoint Server 2010 or SharePoint Foundation 2010. Both support the installation of the Reporting Services Add-in. If you install SharePoint and Reporting Services on different machines, you must install the same version of SharePoint on the Report Server. For example, you would not be able to install SharePoint Foundation 2010 on the Report Server if you were using SharePoint Server 2010 as your Web Front End.
Also, once you get to the point where you have all to tools needed to start building reports, you'll probably want to refer to this MSDN article for actually building reports against a SharePoint List: http://msdn.microsoft.com/en-us/library/ee633650.aspx
Just be careful about how much data is in the lists. I haven't seen any performance metrics on SSRS SP List data source, and I am not entirely sure how the query throttling impacts reporting from large lists (by default query throttling limits queries returning more than 5000 items). If it's a large list, definitely consider limiting the report queries to a reasonable amount of data, or consider alternative approaches to querying the data - for example dumping to another reportable format, like SQL Server Table(s) or Excel spreadsheets. Also, don't forget about all the cool visual client side libraries you can leverage, such as Javascript and Silverlight.
