Recently few of our customers complained about the issue of Report builder 3.0 not responding upon certain operation.
It was very tricly scenario and it took us much time to exactly figure out what could have caused the issue.
This happens only under the following scenarios,
1. Reporting service is set to use either Basic or Custom authentication.
2. When creating a report against Report models.
If you're running your reporting service in any patch level less than CU 7, then you could certainly fall in to the issue if both (1 & 2) are TRUE.
Here is how you can REPRODUCE the behaviour under the above mentioned circumstances,
In this scenario, Report Builder 3.0 stops responding.
We from the Microsoft support team and the Product development team worked together to Debug and FIX this issue and the fix is now available as part of Microsoft SQL Server 2008 R2 CU 7.
More details about this issue can be found from the related KB article,
Also the FIX can be downloaded from the above location.
The FIX includes Report server side fix for Report builder 3.0 click once application and also for the stand alone Report builder 3.0 installation.
[All the posts are AS-IS and doesn't carry any warranty]