So what are you guys doing about SQL Server Reporting Services? This can't be installed because SQL Server (without any SP) doesn't recognise IIS as having been installed, presumably because it's now IIS7 on Vista, instead of IIS 6?
One of the SQL Express Edition products utilizes Reporting Services:
I do not use Reporting Services myself so I can't speak to it's performance or usability. I don't know if your statement about IIS7 is an issue or not with this version of Express.
I am only posting this on the off chance it may be of value.