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I am at a loss. I posted this on SO, but think this is probably a better place.

I have searched high and low and don't know what to do. I am running SQL Server Web Edition on Server 2008, which only supports local databases. I am trying to connect to localhost, but when I test my connection, I get this error.

The feature: "The edition of Reporting Services that you are using requires that you use local SQL Server relational databases for report data sources and the report server database." is not supported in this edition of Reporting Services.

The DB was upgraded from SQL Express and when I select @@version, it says it's Web Edition. I've tried rebooting and that seemed to fix it, but only for a little while.

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This is the goofiest thing I've ever seen. It turns out that it maybe working after all. I was finally able to view a report. Unfortunately I spent all time with the Data Source and assumed the error I was seeing would mean it doesn't work.

Here's the things that threw me off in the Data Source screen

  1. If I made any change at all to the connection string, I would get an error that my password is invalid. There was no ability to re-test the connection and Apply didn't work.
  2. If I do Test Connection I get the error about the version only supporting local databases and can make no changes.
  3. I chose Prompt for Password and put the same credentials that I had in the data source under "Credentials Stored on Report Server". The report worked. Then I went back to the datasource and put those credentials in there and choose "Stored on Server" and was able to "Apply".


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