Disconnecting from CodeGear / Borland tools basically eliminates any Delphi.NET-based solution and general correspondence of your application.
Hope my answer below helps with your solutions.
From experience (rewriting the Delphi application with a group of people) it comes down to one of two options below.
But first a warning: you will take at least the general development efforts that it took to write the current Delphi application.
In our case, this was justified, because the old Delphi application (in fact, this is Kylix) had an end to life for various reasons. Our scribe consisted of two parts: rewrite with limited additional functionality, followed by many additional functions (the design of the first part already took into account the second part).
Back to your choices:
1- general rewrite in C # or VB.NET in Visual Studio
2- partial reuse of existing Delphi business-level code using Oxygene from RemObjecs (Visual Studio plugin with syntax that is very similar to Delphi syntax). CodeGear will soon offer Prism (probably before the end of 2008), which will also be integrated into Visual Studio.
Since the access to .NET data and the user interface are completely different from Delphi, you will have to do it from scratch (for both scenarios 1 and 2). Visual Studio 2008 offers many benefits here in Visual Studio 2005.
There is no such thing as this migration gradually, since here you are completely changing the platform, this is all or nothing.
Both scenarios will take a considerable amount of time (even if you have Delphi experience, getting used to the .NET world will take time).
Visual Studio can interact with Crystal Reports and works well with SQL Server.
Since Visual Studio 2008 offers many benefits (not only .NET 3.5, but also performance), you'd better go for it. On the user interface side, you need to make a balanced choice between WinForms (for example, Windows Forms) and Windows Presentation Foundation (aka WPF).
If this is a 1 to 1 rewrite, you might want to stick with WinForms, as it is familiar with what you have. You probably need to use some third-party components to customize your interface. DevExpress is a good choice here because they have similar components in Delphi and Visual Studio.
But if you want to go for future eye candy, then you can consider WPF. Get ready for a steeper learning curve here than WinForms, as it is very different from what you are used to.
If you decide to stay with Delphi, you may need to look at VCL for the Internet (aka IntraWeb) and in Delphi 2009 (a lot has changed in the Delphi world since Delphi 7 was announced 6 years ago).
Good luck making your choice!
- Jeroen