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SSRS 2008 Report not opening

Last Modified: 2012-05-06
We've developed a report using SQL Server Business Intelligence Development Studio. I setup the TargetServerURL to oursqlserver/reportserver.
When I browse to oursqlserver/reports I can see the report. However when I try to open it, I get this error:

The attempt to connect to the report server failed. Check your connection information and that the report server is a compatible version.
There is an error in XML document (1, 2361).
' ', hexadecimal value 0x0B, is an invalid character. Line 1, position 2361.  
But the report works fine from within BI Studio. I created another report from within the browser, and thats ok.
Any ideas?
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