Brief Description: Report Services 2008 failing with error rsServerConfigurationError
Reporting Services 2008 is stingy with error message information, and without more information, tracking down this error is like looking for a needle in a stack of needles. More error detail is available in %SQL Program Dir%\MSR10.MSSQLSERVER\Reporting Services\LogFiles. The long message associated with my issue was "The report server has encountered a configuration error. No DSN present in configuration file."
This excellent post from the blog of Jessica M. Moss solved the issue for me. So, Thanks Jessica!