I'm not sure if this is your development system or server ... If on your server you can simultaneously provide reporting services on the same server (although you also use twice as many resources). I'm not sure why you would do this; reporting services 2008 are significantly superior and can report data from an instance of sql 2005. If you are concerned about the lack of a service pack for sql 2008, you can report data in sql 2008 from reporting services 2005 ( http://msdn.microsoft.com/en-us /library/ms143736.aspx )
If its local on your own computer, you can install both development tools at the same time ( http://msdn.microsoft.com/en-us/library/bb500441.aspx ); although in this case I would use sql 2005 tools only if you upgrade to sql 2008 because the SQL 2005 code runs in 2008, but not necessarily the other way around.
If you have report service models, make sure you read Report Builder 2, which was launched this week. This is a much better user interface than Report Builder 1.
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