Thx Chris and Adam,
Here is the answer I found.
In my case I wanted to dynamically set the main and subreport datasources at run time using the SubSonic object collections. However, I also wanted to design the report layout using drag and drop of the datasource columns.
But I was unable to design the report using drag&drop because none of my SubSonic collections were showing up in the Website Data Sources.
However, later while I was doing some control binding using the ObjectDataSource control, I noticed that NOW my SubSonic collections were showing up in the Website DataSources window and I could drag and drop the report layout.
So if you are dynamically setting the report datasources at run time and ARE NOT using the ObjectDataSource control already in your project, you MUST add a dummy ObjectDataSource control to one of your aspx pages. This will then make the business object datasources show up in the report designer.