You can't use a report as a data source and send the report to the people on the report. It's a bit convoluted. The way to go about this is to use the same datasource for the report and query it separately to get the emails. Thus, whatever datasource is providing the emails to your report can also provide those  emails to the scheduling app. For this you'll need to write a .NET or Java app to send out the reports, or buy a third-party app that can be found via Google search.