Installing CRM after SQL 2005

I have installed SQL on a Small Business Server 2003 running as a virtual server. When I try to install CRM 3.0 I get the error message:
"[DBNETLIB][ConnectionOpen (Invalid Instance()).]Invalid connection"
One of the suggested reasons is that "Microsoft Server Reporting Services is not supported using SQL Server 2005" 
I would be grateful for any suggestions
Thanks
Dave

Dave,
Is this still an issue?
Thank you!
Ed Price, Power BI & SQL Server Customer Program Manager (Blog,
Small Basic,
Wiki Ninjas,
Wiki)
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Create a wiki article about it!

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