Well what a waste of time that was. I spent ages trying to get SQL reporting working locally, connecting to a SAP BW system, all because I expected the SQL reporting webparts to be useful. You know to take advantage of sharepoint SSO capabilities and utilise them in the rendering of the reports.
But no. The SQL reporting webparts are nothing more than slightly enhanced IFrames, I say slightly enhanced because there is one additional drop down selection that modifies the url for you to display the Toolbar.
Sorry MS but that really sucks.
The only reason I would want to use SQL reporting against SAP BW was the touted sharepoint integration, well guess what I can IFRAME SAP BW. SAP BW whilst not perfect provides excellent reporting services for client and excel and web, it falls down in sharepoint integration and it appears sql reporting has the same issues. Wished I had found this post from Jan earlier.