I've found a partial answer to my question.
To integrate the full version of Crystal Reports 2008 with Visual Studio 2008, you need to install CR2008 for VS2008; it's a feature that is not automatically installed when you install CR2008.
Next, you need to download and install Visual Studio Integration Manager (
http://www.sdn.sap.com/irj/boc/crystalreports-dotnet?rid=/webcontent/uuid/80b94ac6-da77-2b10-dbbc-82b0c113d999). When you run it, you'll find that the current version of CR is Crystal Reports
Basic for Visual Studio. You want to select Crystal Reports 2008(12.0) as the new version.
Whew!
Now I'm going to work on how to use VS as my function repository.