I found information in the reporting services log that indicates the request was unauthorized when querying the SharePoint webservices.
w3wp!processing!1!3/1/2007-10:05:39:: e ERROR: Throwing Microsoft.ReportingServices.ReportProcessing.ReportProcessingException: Query execution failed for data set 'Projects'., ;
Info: Microsoft.ReportingServices.ReportProcessing.ReportProcessingException: Query execution failed for data set 'Projects'. ---> System.Net.WebException: The request failed with HTTP status 401: Unauthorized.
at System.Web.Services.Protocols.SoapHttpClientProtocol.ReadResponse(SoapClientMessage message, WebResponse response, Stream responseStream, Boolean asyncCall)
at System.Web.Services.Protocols.SoapHttpClientProtocol.Invoke(String methodName, Object[] parameters)
at Enesys.ReportingServices.SpExtension.WssLists.Lists.GetListCollection()
at Enesys.ReportingServices.SpExtension.xfc52622414cfea39.x93d236a68267196e(XmlNode x2c1f549d43527566, String x7472fd0c7aee978b, Lists x0e3dc4e8246723b4, DataParameterCollection xf4367403ed9265da)
at Enesys.ReportingServices.SpExtension.Command.x5a9951e7e8383c8d(Boolean xbb3fbbd33e2afaca)
at Enesys.ReportingServices.SpExtension.Command.ExecuteReader(CommandBehavior behavior)
at Microsoft.ReportingServices.ReportProcessing.ReportProcessing.RuntimeDataSetNode.RunDataSetQuery()
--- End of inner exception stack trace ---
w3wp!processing!1!3/1/2007-10:05:39:: e ERROR: An exception has occurred in data source 'Projects'. Details: Microsoft.ReportingServices.ReportProcessing.ReportProcessingException: Query execution failed for data set 'Projects'. ---> System.Net.WebException: The request failed with HTTP status 401: Unauthorized.
at System.Web.Services.Protocols.SoapHttpClientProtocol.ReadResponse(SoapClientMessage message, WebResponse response, Stream responseStream, Boolean asyncCall)
at System.Web.Services.Protocols.SoapHttpClientProtocol.Invoke(String methodName, Object[] parameters)
at Enesys.ReportingServices.SpExtension.WssLists.Lists.GetListCollection()
at Enesys.ReportingServices.SpExtension.xfc52622414cfea39.x93d236a68267196e(XmlNode x2c1f549d43527566, String x7472fd0c7aee978b, Lists x0e3dc4e8246723b4, DataParameterCollection xf4367403ed9265da)
at Enesys.ReportingServices.SpExtension.Command.x5a9951e7e8383c8d(Boolean xbb3fbbd33e2afaca)
at Enesys.ReportingServices.SpExtension.Command.ExecuteReader(CommandBehavior behavior)
at Microsoft.ReportingServices.ReportProcessing.ReportProcessing.RuntimeDataSetNode.RunDataSetQuery()
--- End of inner exception stack trace ---
at Microsoft.ReportingServices.ReportProcessing.ReportProcessing.RuntimeDataSetNode.RunDataSetQuery()
at Microsoft.ReportingServices.ReportProcessing.ReportProcessing.RuntimeReportDataSetNode.FirstPassInit()
at Microsoft.ReportingServices.ReportProcessing.ReportProcessing.RuntimeDataSetNode.FirstPassProcess(Boolean& closeConnWhenFinish)
at Microsoft.ReportingServices.ReportProcessing.ReportProcessing.RuntimeReportDataSetNode.Process()
at Microsoft.ReportingServices.ReportProcessing.ReportProcessing.RuntimeDataSetNode.ProcessConcurrent(Object threadSet)
w3wp!processing!1!3/1/2007-10:05:39:: i INFO: Merge abort handler called for ID=-1. Aborting data sources ...
w3wp!processing!1!3/1/2007-10:05:39:: e ERROR: Exception in abort callback. Details: System.NotSupportedException: Cancelling commands is not supported for SharePoint Lists
at Enesys.ReportingServices.SpExtension.Command.Cancel()
at Microsoft.ReportingServices.ReportProcessing.ReportProcessing.RuntimeDataSetNode.Abort()
at Microsoft.ReportingServices.ReportProcessing.ReportProcessing.RuntimeDataSourceNode.Abort()
at Microsoft.ReportingServices.ReportProcessing.ReportProcessing.Merge.AbortHandler(Object sender, EventArgs e)
at Microsoft.ReportingServices.ReportProcessing.ReportProcessing.ProcessingContext.AbortHelper.Abort(Int32 reportUniqueName, ProcessingStatus status)
w3wp!processing!1!3/1/2007-10:05:39:: e ERROR: Throwing Microsoft.ReportingServices.ReportProcessing.ProcessingAbortedException: An error has occurred during report processing., ;
Info: Microsoft.ReportingServices.ReportProcessing.ProcessingAbortedException: An error has occurred during report processing.
w3wp!processing!1!3/1/2007-10:05:39:: w WARN: Data source 'SharePointOperationsPortal - Test': Report processing has been aborted.
w3wp!processing!1!3/1/2007-10:05:39:: e ERROR: Throwing Microsoft.ReportingServices.ReportProcessing.ProcessingAbortedException: An error has occurred during report processing., ;
Info: Microsoft.ReportingServices.ReportProcessing.ProcessingAbortedException: An error has occurred during report processing.
w3wp!webserver!1!03/01/2007-10:05:39:: e ERROR: Reporting Services error Microsoft.ReportingServices.Diagnostics.Utilities.RSException: An error has occurred during report processing. ---> Microsoft.ReportingServices.ReportProcessing.ProcessingAbortedException: An error has occurred during report processing.
at Microsoft.ReportingServices.ReportProcessing.ReportProcessing.ProcessingContext.AbortHelper.ThrowAbortException(Int32 reportUniqueName)
at Microsoft.ReportingServices.ReportProcessing.ReportProcessing.ProcessingContext.CheckAndThrowIfAborted()
at Microsoft.ReportingServices.ReportProcessing.ReportProcessing.Merge.Process(ParameterInfoCollection parameters, Boolean mergeTran)
at Microsoft.ReportingServices.ReportProcessing.ReportProcessing.ProcessReport(Report report, ProcessingContext pc, ProcessingContext context)
at Microsoft.ReportingServices.ReportProcessing.ReportProcessing.ProcessReport(Report report, ProcessingContext pc, Boolean snapshotProcessing, Boolean processWithCachedData, GetReportChunk getChunkCallback, ErrorContext errorContext, DateTime executionTime, CreateReportChunk cacheDataCallback, ProcessingContext& context)
at Microsoft.ReportingServices.ReportProcessing.ReportProcessing.RenderReport(IRenderingExtension renderer, DateTime executionTimeStamp, GetReportChunk getCompiledDefinitionCallback, ProcessingContext pc, RenderingContext rc, CreateReportChunk cacheDataCallback, Boolean& dataCached)
at Microsoft.ReportingServices.ReportProcessing.ReportProcessing.RenderReport(DateTime executionTimeStamp, GetReportChunk getCompiledDefinitionCallback, ProcessingContext pc, RenderingContext rc)
at Microsoft.ReportingServices.Library.RSService.RenderAsLive(CatalogItemContext reportContext, ItemProperties properties, ParameterInfoCollection effectiveParameters, Guid reportId, ClientRequest session, String description, ReportSnapshot intermediateSnapshot, DataSourceInfoCollection thisReportDataSources, Boolean cachingRequested, Boolean isLinkedReport, Warning[]& warnings, ReportSnapshot& resultSnapshotData, DateTime& executionDateTime, RuntimeDataSourceInfoCollection& alldataSources, UserProfileState& usedUserProfile)
at Microsoft.ReportingServices.Library.RSService.RenderAsLiveOrSnapshot(CatalogItemContext reportContext, ClientRequest session, Warning[]& warnings, ParameterInfoCollection& effectiveParameters)
at Microsoft.ReportingServices.Library.RSService.RenderFirst(CatalogItemContext reportContext, ClientRequest session, Warning[]& warnings, ParameterInfoCollection& effectiveParameters, String[]& secondaryStreamNames)
at Microsoft.ReportingServices.Library.RenderFirstCancelableStep.Execute()
at Microsoft.ReportingServices.Diagnostics.CancelablePhaseBase.ExecuteWrapper()
--- End of inner exception stack trace ---
at Microsoft.ReportingServices.Diagnostics.CancelablePhaseBase.ExecuteWrapper()
at Microsoft.ReportingServices.Library.RenderFirstCancelableStep.RenderFirst(RSService rs, CatalogItemContext reportContext, ClientRequest session, JobType type, Warning[]& warnings, ParameterInfoCollection& effectiveParameters, String[]& secondaryStreamNames)
at Microsoft.ReportingServices.WebServer.ReportServiceHttpHandler.RenderReport(HttpResponseStreamFactory streamFactory)
at Microsoft.ReportingServices.WebServer.ReportServiceHttpHandler.DoStreamedOperation(StreamedOperation operation)
at Microsoft.ReportingServices.WebServer.ReportServiceHttpHandler.RenderItem(ItemType itemType)
at Microsoft.ReportingServices.WebServer.ReportServiceHttpHandler.RenderPageContent()
at Microsoft.ReportingServices.WebServer.ReportServiceHttpHandler.RenderPage()