Hi All,
I am quite new to Pentaho Report Designer. I am trying to establish JDBC Data Source in the report designer using the existing .prpt file.
Database has been created beforehand. Below is the error given:

Error connecting to database [Nippon_Local_Conn] : org.pentaho.di.core.exception.KettleDatabaseException:
Error occurred while trying to connect to the database


Driver class 'com.microsoft.sqlserver.jdbc.SQLServerDriver' could not be found, make sure the 'MS SQL Server (Native)' driver (jar file) is installed.
com.microsoft.sqlserver.jdbc.SQLServerDriver




org.pentaho.di.core.exception.KettleDatabaseException:
Error occurred while trying to connect to the database


Driver class 'com.microsoft.sqlserver.jdbc.SQLServerDriver' could not be found, make sure the 'MS SQL Server (Native)' driver (jar file) is installed.
com.microsoft.sqlserver.jdbc.SQLServerDriver




at org.pentaho.di.core.database.Database.normalConnect(Database.java:459)
at org.pentaho.di.core.database.Database.connect(Database.java:357)
at org.pentaho.di.core.database.Database.connect(Database.java:328)
at org.pentaho.di.core.database.Database.connect(Database.java:318)
at org.pentaho.di.core.database.DatabaseFactory.getConnectionTestReport(DatabaseFactory.java:80)
at org.pentaho.di.core.database.DatabaseMeta.testConnection(DatabaseMeta.java:2734)
at org.pentaho.ui.database.event.DataHandler.testDatabaseConnection(DataHandler.java:588)
at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
at sun.reflect.NativeMethodAccessorImpl.invoke(Unknown Source)
at sun.reflect.DelegatingMethodAccessorImpl.invoke(Unknown Source)
at java.lang.reflect.Method.invoke(Unknown Source)
at org.pentaho.ui.xul.impl.AbstractXulDomContainer.invoke(AbstractXulDomContainer.java:313)
at org.pentaho.ui.xul.swing.tags.SwingButton$OnClickRunnable.run(SwingButton.java:71)
at java.awt.event.InvocationEvent.dispatch(Unknown Source)
at java.awt.EventQueue.dispatchEventImpl(Unknown Source)
at java.awt.EventQueue.access$500(Unknown Source)
at java.awt.EventQueue$3.run(Unknown Source)
at java.awt.EventQueue$3.run(Unknown Source)
at java.security.AccessController.doPrivileged(Native Method)
at java.security.ProtectionDomain$JavaSecurityAccessImpl.doIntersectionPrivilege(Unknown Source)
at java.awt.EventQueue.dispatchEvent(Unknown Source)
at java.awt.EventDispatchThread.pumpOneEventForFilters(Unknown Source)
at java.awt.EventDispatchThread.pumpEventsForFilter(Unknown Source)
at java.awt.EventDispatchThread.pumpEventsForFilter(Unknown Source)
at java.awt.WaitDispatchSupport$2.run(Unknown Source)
at java.awt.WaitDispatchSupport$4.run(Unknown Source)
at java.awt.WaitDispatchSupport$4.run(Unknown Source)
at java.security.AccessController.doPrivileged(Native Method)
at java.awt.WaitDispatchSupport.enter(Unknown Source)
at java.awt.Dialog.show(Unknown Source)
at java.awt.Component.show(Unknown Source)
at java.awt.Component.setVisible(Unknown Source)
at java.awt.Window.setVisible(Unknown Source)
at java.awt.Dialog.setVisible(Unknown Source)
at org.pentaho.ui.xul.swing.tags.SwingDialog.show(SwingDialog.java:250)
at org.pentaho.reporting.ui.datasources.jdbc.ui.XulDatabaseDialog.open(XulDatabaseDialog.java:254)
at org.pentaho.reporting.ui.datasources.jdbc.ui.ConnectionPanel$AddDataSourceAction.actionPerformed(ConnectionPanel.java:252)
at javax.swing.AbstractButton.fireActionPerformed(Unknown Source)
at javax.swing.AbstractButton$Handler.actionPerformed(Unknown Source)
at javax.swing.DefaultButtonModel.fireActionPerformed(Unknown Source)
at javax.swing.DefaultButtonModel.setPressed(Unknown Source)
at javax.swing.plaf.basic.BasicButtonListener.mouseReleased(Unknown Source)
at java.awt.AWTEventMulticaster.mouseReleased(Unknown Source)
at java.awt.AWTEventMulticaster.mouseReleased(Unknown Source)
at java.awt.Component.processMouseEvent(Unknown Source)
at javax.swing.JComponent.processMouseEvent(Unknown Source)
at java.awt.Component.processEvent(Unknown Source)
at java.awt.Container.processEvent(Unknown Source)
at java.awt.Component.dispatchEventImpl(Unknown Source)
at java.awt.Container.dispatchEventImpl(Unknown Source)
at java.awt.Component.dispatchEvent(Unknown Source)
at java.awt.LightweightDispatcher.retargetMouseEvent(Unknown Source)
at java.awt.LightweightDispatcher.processMouseEvent(Unknown Source)
at java.awt.LightweightDispatcher.dispatchEvent(Unknown Source)
at java.awt.Container.dispatchEventImpl(Unknown Source)
at java.awt.Window.dispatchEventImpl(Unknown Source)
at java.awt.Component.dispatchEvent(Unknown Source)
at java.awt.EventQueue.dispatchEventImpl(Unknown Source)
at java.awt.EventQueue.access$500(Unknown Source)
at java.awt.EventQueue$3.run(Unknown Source)
at java.awt.EventQueue$3.run(Unknown Source)
at java.security.AccessController.doPrivileged(Native Method)
at java.security.ProtectionDomain$JavaSecurityAccessImpl.doIntersectionPrivilege(Unknown Source)
at java.security.ProtectionDomain$JavaSecurityAccessImpl.doIntersectionPrivilege(Unknown Source)
at java.awt.EventQueue$4.run(Unknown Source)
at java.awt.EventQueue$4.run(Unknown Source)
at java.security.AccessController.doPrivileged(Native Method)
at java.security.ProtectionDomain$JavaSecurityAccessImpl.doIntersectionPrivilege(Unknown Source)
at java.awt.EventQueue.dispatchEvent(Unknown Source)
at java.awt.EventDispatchThread.pumpOneEventForFilters(Unknown Source)
at java.awt.EventDispatchThread.pumpEventsForFilter(Unknown Source)
at java.awt.EventDispatchThread.pumpEventsForFilter(Unknown Source)
at java.awt.WaitDispatchSupport$2.run(Unknown Source)
at java.awt.WaitDispatchSupport$4.run(Unknown Source)
at java.awt.WaitDispatchSupport$4.run(Unknown Source)
at java.security.AccessController.doPrivileged(Native Method)
at java.awt.WaitDispatchSupport.enter(Unknown Source)
at java.awt.Dialog.show(Unknown Source)
at java.awt.Component.show(Unknown Source)
at java.awt.Component.setVisible(Unknown Source)
at java.awt.Window.setVisible(Unknown Source)
at java.awt.Dialog.setVisible(Unknown Source)
at org.pentaho.reporting.libraries.designtime.swing.CommonDialog.setVisible(CommonDialog.java:230)
at org.pentaho.reporting.libraries.designtime.swing.CommonDialog.performEdit(CommonDialog.java:158)
at org.pentaho.reporting.ui.datasources.jdbc.ui.JdbcDataSourceDialog.performConfiguration(JdbcDataSourceDialog.java:798)
at org.pentaho.reporting.ui.datasources.jdbc.JdbcDataSourcePlugin.performEdit(JdbcDataSourcePlugin.java:71)
at org.pentaho.reporting.designer.core.actions.report.AddDataFactoryAction.actionPerformed(AddDataFactoryAction.java:70)
at javax.swing.AbstractButton.fireActionPerformed(Unknown Source)
at javax.swing.AbstractButton$Handler.actionPerformed(Unknown Source)
at javax.swing.DefaultButtonModel.fireActionPerformed(Unknown Source)
at javax.swing.DefaultButtonModel.setPressed(Unknown Source)
at javax.swing.AbstractButton.doClick(Unknown Source)
at javax.swing.plaf.basic.BasicMenuItemUI.doClick(Unknown Source)
at javax.swing.plaf.basic.BasicMenuItemUI$Handler.mouseReleased(Unknown Source)
at java.awt.AWTEventMulticaster.mouseReleased(Unknown Source)
at java.awt.Component.processMouseEvent(Unknown Source)
at javax.swing.JComponent.processMouseEvent(Unknown Source)
at java.awt.Component.processEvent(Unknown Source)
at java.awt.Container.processEvent(Unknown Source)
at java.awt.Component.dispatchEventImpl(Unknown Source)
at java.awt.Container.dispatchEventImpl(Unknown Source)
at java.awt.Component.dispatchEvent(Unknown Source)
at java.awt.LightweightDispatcher.retargetMouseEvent(Unknown Source)
at java.awt.LightweightDispatcher.processMouseEvent(Unknown Source)
at java.awt.LightweightDispatcher.dispatchEvent(Unknown Source)
at java.awt.Container.dispatchEventImpl(Unknown Source)
at java.awt.Window.dispatchEventImpl(Unknown Source)
at java.awt.Component.dispatchEvent(Unknown Source)
at java.awt.EventQueue.dispatchEventImpl(Unknown Source)
at java.awt.EventQueue.access$500(Unknown Source)
at java.awt.EventQueue$3.run(Unknown Source)
at java.awt.EventQueue$3.run(Unknown Source)
at java.security.AccessController.doPrivileged(Native Method)
at java.security.ProtectionDomain$JavaSecurityAccessImpl.doIntersectionPrivilege(Unknown Source)
at java.security.ProtectionDomain$JavaSecurityAccessImpl.doIntersectionPrivilege(Unknown Source)
at java.awt.EventQueue$4.run(Unknown Source)
at java.awt.EventQueue$4.run(Unknown Source)
at java.security.AccessController.doPrivileged(Native Method)
at java.security.ProtectionDomain$JavaSecurityAccessImpl.doIntersectionPrivilege(Unknown Source)
at java.awt.EventQueue.dispatchEvent(Unknown Source)
at java.awt.EventDispatchThread.pumpOneEventForFilters(Unknown Source)
at java.awt.EventDispatchThread.pumpEventsForFilter(Unknown Source)
at java.awt.EventDispatchThread.pumpEventsForHierarchy(Unknown Source)
at java.awt.EventDispatchThread.pumpEvents(Unknown Source)
at java.awt.EventDispatchThread.pumpEvents(Unknown Source)
at java.awt.EventDispatchThread.run(Unknown Source)
Caused by: org.pentaho.di.core.exception.KettleDatabaseException:
Driver class 'com.microsoft.sqlserver.jdbc.SQLServerDriver' could not be found, make sure the 'MS SQL Server (Native)' driver (jar file) is installed.
com.microsoft.sqlserver.jdbc.SQLServerDriver


at org.pentaho.di.core.database.Database.connectUsingClass(Database.java:502)
at org.pentaho.di.core.database.Database.normalConnect(Database.java:443)
... 125 more
Caused by: java.lang.ClassNotFoundException: com.microsoft.sqlserver.jdbc.SQLServerDriver
at java.net.URLClassLoader.findClass(Unknown Source)
at java.lang.ClassLoader.loadClass(Unknown Source)
at java.lang.ClassLoader.loadClass(Unknown Source)
at org.pentaho.di.core.database.Database.connectUsingClass(Database.java:477)
... 126 more


Hostname : localhost
Port : 1433
Database name : Nippon_Local

Please advice accordingly. Thanks