SQL Server Reporting services. failed to establish connection with project server. verify the url is correct.

Question

Dear All,
I'm working on reporting of Project Server 2010, while configuring SQL SERVER REPORTING SERVICES faced issue after two complete days of troubleshooting along with this gone through plenty of forums, unable to figure out any solution. So finally posting on
technet in order to find solution.
ISSUE/PROBLEM:
At initial configured the SQL REPORTING CONFIGURATION to sharepoint integrated database (SQL SERVER is installed on seperate machine), change the service to Domain Account and also installed sharepoint add in on server story was fine at this point. Furthur
moving to SHAREPOINT ADMIN console and while configuring the Sharepoint Integrated Reporting continuously facing this error:
Failed to establish connection with report server. . . . (Snapshot is attached for your further reference).
My point of concern is that whenerver i try to open the REPORT SERVER URL on project server machine it prompts me to enter username and password but whenever i insert the domain credentails it didnt accept though it can be accesible by using the credentials
of Local Admin of sql server machine. So i wana come to know whether its permission issue if yes then where i should mention the domain credentials.? 
REGARDS DANISH DANIE

Answer 1

Dear Paul,
I am able to open the URL (http://psdb/ReportServer )using
domian credential and page open with these contents
Reporting Services Error
The configuration parameter SharePointIntegrated is set to True but Share Point Object Model cannot be loaded
Second,
Configured the SPN on domain controller , performed the steps required to change the AUTHENTICATION in rsreportserver.config
file also done the registry settings to disable the loop back settings.
Same error still ! .... what should i do now ??? 
REGARDS DANISH DANIE