That's because you are running into a typical double (if not tripple if your
app and Report Server are on different machines) hop. NTLM doesn't support
cross-machine impersonation. Instead, you have to use either Kerberos
delegation or standard authentication. See "Connecting to Remote Data
Sources" topic in the product documentation.

Signature
HTH,
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Teo Lachev, MVP, MCSD, MCT
"Microsoft Reporting Services in Action"
"Applied Microsoft Analysis Services 2005"
Home page and blog: http://www.prologika.com/
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> Hi,
>
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>
> THANKS