Erroneous error in Reporting Services Configuration Manager (2005)

I'm attempting to setup reporting services 2005 on a system that has never
had reporting services installed and has a previous SQL 2000 (sp4) instance.
This server is running Windows 2000 SP4.
In the Reporting Services Configuration Manager I have successfully have
completed (check marks) the following steps "Server Status, Report Server
Virtual Directory, Report Manager Virtual Directory, Windows Service
Identity, Email Settings".
My problem is when I attempt to perform the database connection step. I
click connect and type in my computer name and leave in windows
authenticaiton. I am then able to browse the drop down list of my SQL 2000
databases. I then click new, leave the defaults and say OK. It successfully
creates a ReportServer and ReportServerTempDB. I click Apply, however, and
get the following error:
There was a failure applying your change. A virtual directory must first be
created before performing this operation.
I already created both of the virtual directory steps with no issue. I even
went into IIS and see the directories have been created by the Configuration
Manager. Any suggestions?
--
-DanielMaybe its a clue... But it appears on this server that the application log
is being filled up with .NET Runtime Optimization Service entries. I even
cleared the log yesterday and its full again. Here is what an entry looks
like:
Event Type: Information
Event Source: .NET Runtime Optimization Service
Event Category: None
Event ID: 1100
Date: 11/15/2005
Time: 7:12:20 PM
User: N/A
Computer: PUMBAA
Description:
.NET Runtime Optimization Service (clr_optimization_v2.0.50727_32) - Began
compiling: Microsoft.ReportingServices.Interfaces, Version=9.0.242.0,
Culture=neutral, PublicKeyToken=89845dcd8080cc91
--
-Daniel