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Time Tracking - Reporting with Formula fields

I have a custom object to do this with a picklest the user selects how much time they have spent (.25, .5, 1 hour etc...) on a project. I need to sum this up in reports for costing labor and cant get it to work out. I have a formula field that turns the picklist value into a number field, BUT that field doesnt appear when I run a report.

If I cant use formula fields in reports using a picklist is out the window...

How is this best handled? Is there a time function to get an elapsed time from two date/time fields that can be summed in a report?

I really hat being stupid...or slow.

Formula fields must be on the page layout for the object in order to sum them in reports, the picklist works fine once I put the Formula field on the page.