Based on the attached screen shots, you use Data Source Configuration Wizard
provided by Microsoft. In order to connect Telerik Report to custom data object, you need to use ObjectDataSource Wizard that will take you though the steps of configuring ObjectDataSource Component
ObjectDataSource Wizard can be found in VS toolbox under Telerik Reporting node - check this screen shot
. Detailed steps on how to configure the wizard are provided here
You might also review How to Databind to Collection Properties
KB article that provides an example how to bind to hierarchical data.
I hope this information will help.
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