The report server is not responding. Verify that the report server is running and can be accessed from this computer

I am trying to run SSRS 2005 on a windows 2008 server.

I have configured SSRS using the tool and get all green check boxes.

when I go to http://localhost/reports I get the error:
The report server is not responding. Verify that the report server is running and can be accessed from this computer

In googling soplutions on the web everything seems to point to NETWORK SERVICE not having the correct permissions to the C:\Program Files\Microsoft SQL Server\MSSQL.2\Reporting Services\ReportManager directory.  I have given NETWORK SERVICE and IUSR read / execute access but still get the same error.

I have also tried the stop reporting services, restart IIS and then start reporting services, this too doesn't do anything for me.

I have downloaded and run process monitor to look at the filesystem and it basically is showing the following:

Date & Time:      3/26/2010 11:07:56 AM
Event Class:      File System
Operation:      CreateFile
Result:      PATH NOT FOUND
Path:      C:\Program Files\Microsoft SQL Server\MSSQL.2\Reporting Services\ReportManager\Pages\Folder.aspx\web.config
TID:      1424
Duration:      0.0000458
Desired Access:      Generic Read
Disposition:      Open
Options:      Synchronous IO Non-Alert, Non-Directory File
Attributes:      N
ShareMode:      Read
AllocationSize:      n/a

Look at the path ... it looks like it is trying to find web.config in the wrong location ...

If I look at IIS the virtual directories apper to be correct:
Reports -> C:\Program Files\Microsoft SQL Server\MSSQL.2\Reporting Services\ReportManager
ReportServer -> C:\Program Files\Microsoft SQL Server\MSSQL.2\Reporting Services\ReportServer

Any thoughts?
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JeffStoneAuthor Commented:
Also, my admin has installed SP3 on this server ...
Megan BrooksSQL Server ConsultantCommented:
Installing SSRS 2005 on Windows Server 2008 x64 can be very messy. Are you running x64?
JeffStoneAuthor Commented:
Yes as a matter of fact ...

We got it to work with "relative" ease in a development environment but when we went to build the production environment not so much ... similar problems we encountered in building the dev environment doesn't seem to have the same solutions.
Megan BrooksSQL Server ConsultantCommented:
Here are some notes I have from back when I was using SSRS 2005. The problem is with the RS configuration utility; the Web Service Identity configuration doesn't always work with Windows Server 2008. This is an excerpt from my instructions for how to complete this step of the configuration...

The configuration utility does not work correctly under Windows Server 2008 and the following step will fail. Follow the instructions in this article:  (skip to “How to configure the Report Server Web service or Report Manager to use an application pool that runs under a domain user account”). You can save time by completing these steps after attempting to configure the web service identity below and having it fail. It will set part of it up correctly, but will fail to set <WebServiceAccount> in rsreportserver.config, to add the web service account to the local group SQLServer2005ReportingServicesWebServiceUser$xxx, and to create several of the registry entries.

After that it may still fail trying to access C:\Program Files\Microsoft SQL Server\MSSQL.1\Reporting Services\ReportServer\rsreportserver.config. A simple workaround is to grant explicit read permission for this file to the RS service and RS web service accounts.

Click Web Service Identity
For Report Server, click New
Enter “ReportServerPool” for the application pool name
Enter the service account & password (do not use a built-in account).
Click OK
For Report Manager, select “ReportServer” from the drop-down
Click Apply

These notes were an attempt to capture the steps needed to make configuration work. I am not sure I caught *everything*, though. You will know it is the same problem when you go through the KB article steps, if you find that part of the installation has been completed and part of it hasn't.

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JeffStoneAuthor Commented:
awesome ... thanks
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