Reporting Services for SQL Server 2005 is built on top of IIS. Reporting Services for SQL Server 2008 is not, but you may still need IIS installed anyway; I seem to remember that the install process checked for IIS as a precondition.
What version of SQL Server are you using? I assume that you have a version with reporting services, but just to verify, the Express editions don't have it. SQL Server developer edition is the cheapest way to go; it's usually available on Amazon for something like $45. Developer edition has everything, but with a restricted license.
I haven't messed with reporting services much (it's on my list, but never seems to get to the top of the list). However, the 2008 version uses Visual Studio 2008 for developing reports (renamed as SQL Server Business Intelligence Development Studio). Once you have all that installed, you should be good to go.