The configuration file contains an element that is not valid. The ReportServerUrl element is not a configuration file element.

I was configuring SSRS 2005 on Windows Server 2008, and on the last stretch (after several errors because of permissions on Windows Server 2008 side) .. I was getting this issue. It seems SSRS does not bode well if the server has more than one website.

What I had to do was to go to the RSWebApplication.config and comment out

<!-- <ReportServerVirtualDirectory></ReportServerVirtualDirectory> -->

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