We are having a problem deploying a reporting services report to a sql reporting services computer that is configured in SharePoint Integrated mode. I can successfully deploy to
This occurs when BIDS cannot connect to the Report Server instance. Check the URLs, and see if any firewall is blocking the connectivity to the remote RS instance.
I finally found the solution to this issue. Basically the build of sql server 2008 reporting services I installed added an RSWindowsNegotiate setting into rsreportserver.config file and I was running the reporting service under an account other than Network Service. I removed the RSWindowsNegotiate setting and just left the RSWindowsNTLM setting and everything started working properly for us.
More info can be found here, Solving the Reporting Services Login Issue