SSRS Security for domain users (troubleshooting question)

I am having trouble granting access for domain users group in SSRS.
Currently, only local or domain admins can view reports at http://server/reports
Domain users get the proper home page, with no folders.

This is a windows 2008 server. The sql server is hosted locally. The sql server is running on a domain account. The web server is IIS7. Both the "Reports" website and the "ReportServer" web service are running on a common app pool, which has a basic domain user identity.

The system-wide security settings defines "domain users" and "everyone" as a "system user" role.
The root folder of the reports web site has "domain users" and "everyone" as "browser".

I have tried restarting IIS, and still, the only users to can see reports and folders are admin-level users.
What am I missing here?
Thanks in advance
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The reports and folders should inherit the security set on the root folder. Have you checked one of the folders to confirm that it inherited all accounts/groups? Try creating a new folder to see if it picks up the permissions properly. Also make sure that you have qualified the account groups with the domain name (ie: YourDomainName\Domain Users).
rocksanddirtAuthor Commented:
here are the security permissions on the root folder:
BUILTIN\Administrators Content Manager
Everyone Browser
[DOMAIN]\domain users Browser
Browser role have the view models, folders, reports and resources as well as manage individual subscriptions. This is the default settings.
here are the system role assignments:
BUILTIN\Administrators System Administrator
Domain Users System User
everyone System User

I tried making a new folder, but once again as a domain user when i navigate to:
The home directory appears, but is empty.

BTW when you are typing in usernames, SSRS validates the username, so I know the user names are correct
Hard to tell if this is a SSRS problem or Win2008 problem. Have a look at this article to see if it has anything useful.
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We’d all like to think our company’s data is well protected, but when you ask IT professionals they admit the data probably is not as safe as it could be.

One more install and configuration msdn article.
rocksanddirtAuthor Commented:
I used your second article as my guideline for setting up the server.
The fist article talks about how to get the websites up and running in IIS7, which I have already done.
I haven't used server 2008 with SSRS so can't think of anything else to suggest. Doesn't make much sense that you can get to the root folder but not see any reports or folders. Hopefully someone else has encountered this and can offer a solution...
rocksanddirtAuthor Commented:
I found out what was going on here: It automatically started working after a few hours.
Even though you have changed the permissions on the SSRS for reports/folders, your changes will not be applied because IIS is caching permission sets.

I thought that pressing the start/stop button on the web site in IIS would be sufficient, but it was not.
I think you need to run as administrator: IISReset.exe

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