Report Server Has Encountered A SharePoint Error. (rsSharePointError)

Ive seen this asked all over but am yet to find a fix for my case.

I have 1 SharePoint 2007 server
1 SQL 2005 SP2 server with Reporting services running

Reporting services is configured and running all with ticks in SharePoint integration mode, the reporting services section shows up in Central Admin ok.

When I try to access reporting services I get the error :

http://reports.domain/reportserver


Report Server has encountered a SharePoint error. (rsSharePointError) Get Online Help

For more information about this error navigate to the report server on the local server machine, or enable remote errors Looking thru the logs I get the error :

w3wp!library!d!04/04/2008-13:54:20:: Call to GetItemTypeAction(/).
w3wp!library!d!04/04/2008-13:54:20:: Call to ListParentsAction(/).
w3wp!library!d!04/04/2008-13:54:20:: Call to ListChildrenAction(/, False).
w3wp!library!d!04/04/2008-13:54:20:: e ERROR: Throwing Microsoft.ReportingServices.Diagnostics.Utilities.SharePointException: Report Server has encountered a SharePoint error., ;
Info: Microsoft.ReportingServices.Diagnostics.Utilities.SharePointException: Report Server has encountered a SharePoint error. ---> System.NullReferenceException: Object reference not set to an instance of an object.
at Microsoft.ReportingServices.SharePoint.Server.SharePointDBInterface.internalFindObjectsNonRecursive(String wssUrl, CatalogItemList& children)
at Microsoft.ReportingServices.SharePoint.Server.SharePointDBInterface.FindObjectsNonRecursive(String wssUrl, CatalogItemList& childList, Security secMgr, IPathTranslator pathTranslator, Boolean appendMyReports)
--- End of inner exception stack trace ---

I setup a new website called RS Web Site in IIS on the SQL box, I then set this in the Configure Report Server. I have made sure Annonymous access is off.

Does anyone know how on earth I can resolve this ..

Many Thanks

Marcus