I want to configure Reporting Services 2008 to use a custom defined username and password for access. I read that I must set reporting services to do basic authentication :

<AuthenticationTypes>
         <RSWindowsBasic/>
  </AuthenticationTypes>

But I didn't find specified a location where I might create usernames and passwords.

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Edit:

Reporting Services 2008 uthenticates against the Local Security Authority (LSA). Anything the LSA can authenticate against can be a credential source, but "out of the box" you're talking about local user accounts on the server computer itself, domain user accounts in the domain the server is a member of, and, if there are any, accounts in trusted domains (or trusted Kerberos realms).

(Thanks, MattB, for pointing out that Reporting Servers 2008 doesn't use IIS anymore.)

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is correct except for one thing - by default Reporting Services 2008 does not use IIS - it handles authentication internally. This is a change from previous versions of RS. – MattB May 13 '10 at 15:18
@MattB: Yikes! That shows me for commenting when not having actually used Reporting Services 2008... – Evan Anderson May 13 '10 at 15:44
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