Ok, I got the problem resolved. I had to login to the sccm server as the Domain\administrator account. Then go to start, all programs, SQL 2008, configuration tools, Reporting Services config manager: Then connect to the database, then you go to the database tab on the left panel and click on change database, I changed mine to ReportServer2, then Report server mode is native; For credentials I used service account=LocalSystem; It will then create the database. I logged off and logged back in as smsadmin and followed the steps to create the reporting services point roll and YES it works now. If I have missed any steps please let me know, because i am not that great of a writer