I just spent about 4 hours trying to figure out why in the world I couldn’t get the “Report Manager Virtual Directory” which was red to go green.  Well I figured it out.

If you are looking at your “Reporting Services Configuration Manager” and have “Report Server Virtual Directory” with a green check mark automatically then you will not be able to get the rest to work.  You HAVE to configure “Report Server Virtual Directory.”

So basically  to get it to work follow these steps.

1. Click Report Server Virtual Directory tab on the side.
2. Click the New… button.
3. Choose the Web Site.  ( I just chose Default Web Site)
4. Click Apply

After doing that it should auto configure the rest until you hit Database Setup and that is pretty straight forward.  Part of my problem is I went straight to the red without looking at anything else.

Hope this saves someone a couple of hours.