Convert rdl(2008) to rdlc(2008) file Problem

Cant use  ssrs SQL R2 in visual studio 2008,(if u try to convert rdl to rdlc, result is error with unknown html code)

Reason is,

Visual Studio 2008 was released much earlier than SQL Server 2008, so ReportViewer 2008 is based on the 2005 version of RDL.
A SQL Server Reporting Services 2008 server report is based on the 2008 version of RDL, so, it can't be degrade to 2005 RDLC.

In this case, we need to redesign the local report with Visual Studio.

In order to convert a RDL 2008 to RDLC 2008, we can follow the steps in the original article you have post.
However, this RDLC can't be used in Report Viewer 2008 as Report Viewer 2008 need RDLC 2005. To use RDLC 2008, please use Report Viewer 2008 R2(10.0.0.0). Report Viewer 2008 R2 is coming with Visual Studio 2010.