Is there a way to generate test reports using Selenium?
The short answer is that yes you can generate test reports with Selenium. How to achieve this (and their exact format) will however depend on the programming language and test runner you are using (for instance JUnit, TestNG, Test::Unit or RSpec). You can look at the examples/ruby directory in the Selenium Grid distribution to see how you can use RSpec and Selenium to generate reports which include HTML capture and OS screenshots when a test fail.
