Hello,
I am trying to use the SQl Server database reporting tools to create a
report on the database to find areas for optimization including table
formats, column formats, and sizes. Can anybody please help me with
this. If any body has used any other tool by which I can create above
mentioned reports plz do let me know. I will be really thankful for
your help.

Thanks
Suneel

Will the report output just the schema, or are you looking for a
report to make suggestions on things like shortening column lengths
and missing indexes? A place to start would be the INFORMATION_SCHEMA.
All DB's have available many tables like INFORMATION_SCHEMA.COLUMNS.
Lookup in BOL.