Distributed Server Environment Consideration
Best practice is to run Reporting Services on a separate server to the SharePoint server. In a multiple-server environment (that is, where SQL Server 2005 and Reporting Services are on separate servers to SharePoint Server 2007 Web front-end servers), you will need to configure Kerberos to enable impersonation of the user account accessing the database server, also referred to as delegation or double hop. Each server will need to be trusted as part of the delegation. Other considerations include configuring a common domain user service account for application pools on Web front-end Reporting Services servers and correctly configuring the Web Service and Windows identity as part of the Reporting Services ...
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