Finally figured it out and have the SSRS running on one of our WFE's. It should be noted that we have a medium farm for about 70 users. We have 2 WFE's that are load balanced, hitting a SQL cluster. Our Farm is pretty underused...OK it is way overkill for the amount of users we have and the the amount of users that are actually using it. The machines are beasts and we averaging something like 80 distinct users and 375 hits a day.
I figured out that I had to give my users distinct rights to the reporting services folder. Thanks SSRS for the help
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