Can you embedd one of the current table's reports on a form that has the currently open form's record highlighted in the report?

Not easily.  I can think of an approach, but it would not be a casual undertaking.  You would need to control how a user accesses a record to view or edit it, and then have them click a spewcial buttn to View or edit the record. 

That would record the user's "Focus Record ID#" and then that Focus Record ID# would be able to be looked up back down into the table and then a formula would be able to highlight.