The report server cannot open a connection to the report server database

I have SQL server installed to I can connect to RS using my domain/user account. However, when I try to go to http://<machine_name>/Reports/Pages/ReportViewer.aspx, I get error as
    * The report server cannot open a connection to the report server database. A connection to the database is required for all requests and processing. (rsReportServerDatabaseUnavailable) Get Online Help
          o Login failed for user '<machine name>\ASPNET'
    * I also noticed that after I installed RS,I do not see reports folder under C:\Inetpub. This folder does not exist, I manually created reports virtual folder in IIS and liked it to  C:\Program Files\Microsoft SQL Server\MSRS10.MSSQLSERVER\Reporting Services\ReportServer
    * Thsi is obviously permissions issue and I missing something so your help will be really appreciated.
During installation, I always specified user as domain\user.
Thanks

Hi NewToReporting,
From you descriptions, I know you have tow questions: 1.Why the SQL Server Reporting Services does not create virtual directories in the wwwroot? 2. Why the error "A connection to the database is required for all requests and processing" happen? If I have misunderstood, please do not hesitate to let me know.
One of the changes in SQL Server Reporting Services 2008 is the removal of the Internet Information Services (IIS) dependency. So, we won't see report server virtual directories in the wwwroot folder.
The second problem is caused by the user '<machine name>\ASPNET' does not have permission to login the SQL Server database "Reports".
To solve the issue, please follow these steps:
1.Open SQL Server Reporting Services Configuration Manager(Start - All Programs - Microsoft SQL Server 2008 - Configuration Tools)
2.Go to "Database" tab.
3.Click "Change Credential"
4.In the coming dialog, fill the textboxes with this information(some textboxes are not modifiable )
Server: <the server name of the report server catalog database>
Authentication Type: Current User - Integrated Security (This will use the user we are login to connect to the database server.)
UserName:(If selecting "Current User - Integrated Security", this textbox is not modifiable. )
Password:(If selecting "Current User - Integrated Security", this textbox is not modifiable. )
5. Click Next
6.In the coming dialog, configure the following information:
Authentication Type: Service Credential(This will use the user the reporting services running under to connect to the report server catalog database. The user is the one we configured in "Service Account" tab)
UserName:(If selecting "Service Credential", this textbox is not modifiable. )
Password:(If selecting "Service Credential", this textbox is not modifiable. )
7.Click Next to confirm the information.
8.Click Next to apply.
This will auto add the user  '<machine name>\ASPNET'  to login group, set this user to be the owner of report server catalog database, and also give this user "RSExce" role.
Now, we are able to connect to the report server.
For more information, please see:
Why Leave IIS: http://blogs.msdn.com/bwelcker/archive/2007/12/04/everybody-why-leave-iis.aspx
Configuring a Report Server Database Connection: http://msdn.microsoft.com/en-us/library/ms159133.aspx
If you have any more questions, please feel free to ask.
Thanks,
Jin ChenJin Chen - MSFT

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