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By default, users do not see the "Report Builder" button on the Report Manager toolbar in SQL Server 2008 (R1). How do I give the user permission to use the Report Builder?

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Try graning Manage Reports

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There is a role for this on the security tab in Report manager. Do a new role assignment or add the Report Builder role to an existing role assignment. Additionally you may need to add them to the site security section as a System User.

Home Folder Security:

Site Security:
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