Designer 3.x currently supports report generation in pdf, rtf formats. There is no provision currently to generate html reports. To generate an out of box html report in Designer, there is an alternative.
Preferences -->Novell -->Identity Manager -->Document Generation --> check the 'Output XML source files'
> java org.apache.xalan.xslt.Process -XML -in $workspace\1\Designer\Documents\Generated\1.fo.xml -xsl fo2html.xsl -out report.html
The above command takes xsl-fo as input and applies the xsl-fo to html transformation using fo2html.xsl and generates report.html
jdk1.6, xerces.jar, xalan.jar. By default jdk1.6 gets shipped with these jars in jre\lib\endorsed folder