Local reports (RDLC) are rendered by the ReportViewer control, which is a VS 2008 component and is present with our without SSRS (2008).
So, if you are asking if VS 2008 can produce reports (RDLC) that render locally in the VS 2008 ReportViewer control, the answer is yes (but it uses the 2005 schema).
If you are asking if the SSRS Report Editor can create RDLs that render in the VS 2008 ReportViewer control (for instance by renaming them to RLDC, the way in worked with VS 2005 and SSRS 2005), the answer is no (because they use the 2008 schema).
The difference - if you add a new report to a web project, for instance, you are using the VS report designer and it will create a 2005 RDLC schema that renders in the 2008 control.
If you add a new report to a ReportServer project, you are using the SSRS report designer that will create a 2008 RDL schema that is not compatible.