Diff between Update and No Update Report

While creating batch version I found an option on Virtual M/c Fat Client like 1) No Update Report 2) Update Report. You have to opt for any one. What does it signify ? Does it mean that if i select NO UPDATE REPORT then any standard file I/O (for e.g. F42199.Update) within the UBE will not be possible. Pls help me out ASAP.

I believe that if you select no update, when the report is run, any update IO will be skipped/ignored. Someone can correct me if I am wrong.

Spot on.
This is a real trap as you also can't change this option after you have started development (other than through SQL). The first time I encountered this, I was really stumped as there are no error logs written. All update, insert or delete statements in your UBE are completely ignored!

From memory, this was introduced on SP22 but only for E81 (and higher?), but not in XE. What I am not sure of is when you upgrade from eg XE to E81 what will happen to this flag on custom reports. Has anybody gor an insight to this?

Rgds,