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SQL Report Builder 2.0 Error: Request failed with HTTP status 401: Unauthorized

I'm trying to get report bulding up and running, and I can create and run a report on the report server itself, but when I try to run the report from Report Builder 2.0 on a user's machine I get "The request failed with HTTP status 401: Unauthorized."  Here are some notes:
1. I can choose a published Datasource from the report server on the user machine so I must have at least some permissions.  
2.  The user in question even has domain admin rights.
3.  Trying to go to the reportserver site http://servername/reportserver on the user's machine gives me an NT authentication box that does not accept any credentials, even of the domain admin account.  I can access both the reportserver and reportmanager site fine from the report server itself.
4.  Even logging in as the actual domain admin from a different PC gives me the same errors.  

From those I am deducing that somewhere permissions are set for only the local machine, BUT I have no idea where to begin on finding out exactly which permissions are wrong.  All the file-level permissions look good, and I don't see any Permissions settings for the Report server application pools.  I've spent two days trying to figure this out and it's probably something simple.  I am using SQL 2008 Enterprise with Reportings Services and Report Builder 2.0.
1 Solution
dgoogeAuthor Commented:
Finally figured it out.  This problem was due to some weird effect Microsoft Data Protection Manager had, it actually changed security settings in the IIS Metabase, specifically AccessFlags.  Have no idea why, but here is the resource with the solution:

I was able to solve this same issue by using the host name for the report server instead of the IP address.  I did not have Data Protection Manager installed but had the exact same issue.

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