To complete this task, you will also need to install Visual Studio 2010. You can download a trial version of Visual Studio 2010 from http://www.microsoft.com/visualstudio/en-us/try.
Visual Studio 2010 can be either installed in VM, or install on your host computer for better performance and manageability. More details about setting up Visual Studio on the Host computer and enable remote debugging, please visit Jim Wang's blog: http://jianwang.blogspot.com/2011/07/crm-2011-plugin-development-workspace.html.
Note
Because Visual Studio 2010 does not support the Integration Services, Report Services and Analysis Services projects for SQL Server 2008/R2. If you are developing CRM reports, you need the Visual Studio 2008 or Business Intelligence Development Studio (an optional component in the SQL Server 2008/R2 installation), as well as the Microsoft Dynamics CRM 2011 Report Authoring Extension.