I recently built an internal SharePoint farm consisting of the following servers:

  1. Server 1: Application Server
  2. Server 2: Project Server Application Server
  3. Server 3: Web Front End
  4. Server 4: SQL/SAS/SRS Server

 

After much work I was able to get the initial configuration for SSRS working.  When I went to create a datasource in a SharePoint list with the DataSource content type enabled, I received the error below:

 

Error:  SQL Server Reporting Services SOAP Client Proxy  0000 High Exception encountered for SOAP method GetSystemProperties: System.Net.WebException: The request failed with HTTP status 401: Unauthorized

After some digging I found that if I changed the authentication in Central Administration from Windows Authentication to Trusted Account, the issue dissappeared.  I still need to research, however, this is progress.