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This is a very common issue. You will not find Lead Type in the Reports. Following are the two solutions available:
Create a custom picklist and copy the Lead Type into the picklist using the Post Default and workflows facility provided by CRMOD.
However the draw back is that when the lead type changes you need to change the pick list value for the custom picklist field also.
Instead of a custom pick list you can use a Short text or Long text. You can use this field in the report also. There is no maintenance for this also.
My suggestion would be Solution 2.
If there are any clarifications you can email me also.