A common issue when setting up Reporting Services integration with SharePoint is that the SharePoint add-in is not installed properly although the setup program doesn't indicate any issues. More than likely, the culprit is that the person who installed the add-in is not SharePoint Web farm administrator and Site Collection administrator.

As a first stop for troubleshooting SharePoint integration issues, you should examine the add-in log after the add-in setup completes to verify if it was installed successfully. You'll find the log file (RS_SP_<N>.log) in your temp folder, such as \Documents and Settings\<login>\Local Settings\Temp. Specifically, check that all activation tasks have completed successfully and that there are no errors. If all is well, the log files should look as follows:

User: <userid>

Installing Report Server feature.

Calling copyappbincontents command.

copyappbincontents command completed successfully.

Adding Report Server feature to farm.

Installed Report Server feature.

Activating Report Server feature to root level site collections.

Activating feature in web app 'SharePoint - 80'

Activating feature to root site collection: http://<server>

Activated feature for root site collection: http://<server>

Activating Report Server feature in all admin site collections.

Activating feature in web app ''

Activating feature to root site collection: http://<server>:35000

Feature already activated in site collection http://<server>:35000