SRS Server Validation Error while installing Operation Manager Reporting

We tried to install Operation Manager Reporting on Windows 2008, but during the installation, the wizard showed the error "SRS Server Validation Error". We spent quite sometimes to do troubleshooting and verify the step-by-step installation procedures (inclusive SQL 2005 & SQL 2005 SP2 installation), but we found nothing wrong with those procedures. Furthermore, the SQL Reporting Service Configuration did not return any error and every components are showing healthy status.

After hours of troubleshooting, I found that the IIS 7.0 does not allow executable script and program to run on the SQL reporting virtual directory. After we make some permissions changes on the SQL reporting virtual directory, the installation then can be completed with no error.

Below are the steps for editting the virtual directory permissions:

1. In IIS Manager, open the Sites folder, and then open the folder of the Web site that contains the report server virtual directory.
2. Select the report server virtual directory.
3. In the IIS area, double-click HTTP Handlers.
4. In the Actions pane, click Edit Handler Permissions.
5. Click Script, and then click OK.

If the above matter cannot help you, try to verify your SQL reporting service status by using Reporting Service Configuration, make sure all components and services are in healthy status.