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Public SSRS data report

I can do everything but view a data report online:
I am able developed a basic BIDS 2008 SSRS report. I was able to get BIDS to preview it. I deployed it and it ran from the IE browser SSRS reports interface. I can view a report without any data connections using a Public URL. The problem is when I try to run a report with data from a Public URL. I appear to get a permissions error going to the sql sever.

----------------------this is error message returned into the report viewer body instead of the SSRS report:
An error has occurred during report processing. (rsProcessingAborted)
Cannot create a connection to data source 'DataSource1'. (rsErrorOpeningConnection)
For more information about this error navigate to the report server on the local server machine, or enable remote errors

-----------------------I am hoping for a check list of steps to review for setting up a public facing SSRS data report

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Nico Bontenbal

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Michael Hood

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I really dig the approach. I put forth some different users and options. I still get that same error message.

-------------in addition to report viewer error--This is a message logged in sql server:--
Login failed for user 'IIS APPPOOL\ASP.NET v4.0 Classic'. Reason: Token-based server access validation failed with an infrastructure error. Check for previous errors. [CLIENT: <local machine>]
***both of those messages are write on that report viewer
-----------------

Can you recommend a credential path?
Does the web.config has any options for ssrs?

SOLUTION