Taken straight from the SP2 documentation:

“Report model generation from Oracle data sources that run on version or later is supported. You can generate Oracle-based models by using Report Manager, Management Studio, or Model Designer.”

This is huge and wonderful news.  We were connecting SQL Server to Oracle, and then creating models off of the SQL Server tables to accomplish this.  Needless to say, we didn’t do too much of this.  And perhaps more needless to say, we will be using the feature heavily.  I didn’t like that it was not included in the original release of SSRS 2005, but I guess it is one of those things you really appreciate more since you didn’t have it in the first place.  Now to test how well it works…I’m assuming it’ll be fine like most everything we have experienced with SSRS.