If you don't run your IIS on the default port 80 you should switch it to port 80 before installing reporting services else the install program gets very confused.  (It ended up creating a second default website in XP for me which wouldn't start, I had to copy the two virtual directories from that space to the actual running space my other sites are on)

I have it working now though in the VS IDE, my only disappointment is I haven't figured out how to switch the connection string for a report at runtime.  Each of my customers has their own sql server space and so I'd like them to be able to log in, and have that login information determine the datasource the reports use.  I'm also having some difficulties getting it to render in an ASP .NET page but I think that is more due to improperly setting my report path.

I haven't really had time to explore these issues.  Probably won't until next week since I'm going home to visit the folks in Ohio this weekend and interviewing for some local jobs there (Funny how getting married and the thoughts of starting a family make you homesick).  I'll post a follow-up when I resolve the issues.