Hi All, ConfigMgr 2007 R2 introduced a new feature for reporting. SQL reporting services based reporting instead of the original web based reports was added as a new feature. This makes sure that all system center products now use a consistent reporting product. Although both reporting methods can be used in conjunction with each other in the current release, as previously mentioned on this blog, this will not be the case in Sccm v.Next. In this respect it makes sense to learn the ropes on this SRS...(read more)

Read the complete post at http://scug.be/blogs/sccm/archive/2009/05/16/sccm-2007-r2-sql-reporting-services-named-instances-and-greyed-out-config-option.aspx