Read original post at Khalid Budajaja's Blog
Telerik Reports are Class based, so we will create a Class Library Project to contain Telerik Reports.
To feed the Telerik Reports with data using Entity Data Model, we cannot use the EDM located in the Silverlight Web project; as a circular dependency issue will rise once we add a reference to the Silverlight Web project from the Telerik Report Class Library project. As an alternative, we can create a new Class Library Project to contain the Entity Data Model that will feed the Telerik Report Class Library project.