Hi raingeek....
I've Also been banging my head against the wall all day on this today 6 installs and reviewing group policies and Firewall settings, its been for me a result of the AD account password and the one I enter in the Reporting module....
it might well be something to do with password length, I had a repeatable password ie my Password says is passwordpassword in AD...then if I enter the details within the report module as just "password" I can run the reports no problem which is even odder ( if there is such a word!)
I have been playing around with different passwords my repeatable password is 18 Characters in total, you just might want to give that a try, if that's any help :-)
Paul