I'm struggling setting up reporting service 2008 with sql server 2005 also installed. It appears that 2008 reporting service has changed to where it doesn't create virtual directories. I'm struggling to understand the difference between 2005 and 2008 and how to configure 2008. Right now when I try to deploy the report it goes to the virtual path of 2005. I would appreciate any help or if you can point me in the right direction.