When you install Team Foundation Server 2008 to use an existing instance of SQL server Reporting services or if you have already installed and configured SQL server reporting services on the Application tier, you might encounter an error,
Error 29112. "Team Foundation Report Server Configuration. Either Sql Reporting Services not properly configured, or the Reporting services website could not be reached. Use the Reporting services configuration tool to confirm that SQL Reporting Services is configured properly and that the reporting service website can be reached, and then run the installation again. For more information, see the team foundation installation guide."
This error appears if SQL server reporting services databases are configured in SharePoint integration mode. Team Foundation Server 2008 works with reporting services databases on “native mode”. This part of the configuration is done by the Team Foundation server installation by itself. That is why it is recommended to just install SQL server reporting services with “Install but do not configure the server” option (refer point .13 of the install guide, section: How to: Install SQL Server Reporting Services in a Dual-Server Deployment)
1) Drop the existing reports databases (including the tempdb) from SQL server management studio.
2) Launch SQL server “Reporting services configuration manager” and connect to the reporting services instance.
3) Select “Database setup” and click new to create a new set of databases and make sure “create the report server database in SharePoint Integrated mode.” option is unchecked.
4) Once the databases are created and connected fine, continue with the Team Foundation Server installation.
Content by: Raviku