Your daily reports table should have a foreign key that is populated by the primary key from the user table. Leave the primary key, but add a foreign key. It should just be a text field, not an auto enter serial
In the relationship:
UserID will connect to _fkUserID (the foreign key in the Daily reports Table
This is the proper way to connect the relationship.
After that is corrected, you will have to re connect the records so the relationship works, Then you should be able to create a simple report (just to make sure the data is correct)
Now as far as the actual report, if everything else is set up, you would need to google 'FileMaker Cross-Tab Report' for a step by step method of creating a cross tab report.
For example, where does the number 26 come from (the intersection of User 1 and Project 1)