1. Is that the best option?
Yes, that's what you need to do
2. 6 reports existed on the old server. How can I get those back, including the data sources?
After you restore the encryption key your old reports and datasource should be available.
For a full description of all the steps necessary to move a reportserver database see http://technet.microsoft.com/en-us/library/ms143724.aspx
[font="Verdana"]Markus Bohse[/font]