The Report Server Windows Service 'ReportServer' Is Not Running. The Service Must Be Running To Use Report Server

Hello Reporting Services 2005 users or Reporting Services Team,
I have done everything to get pass this error but no luck.
My setup is :- WIndows 2003 Standared Edition SP1
Sql Server :-
Microsoft SQL Server 2005 - 9.00.1399.06 (Intel X86) Oct 14 2005 00:33:37 Copyright (c) 1988-2005 Microsoft Corporation Standard Edition on Windows NT 5.2 (Build 3790: Service Pack 1)
Reporting Services starting SKU: Standard.
From the Reporting Services Configuration Manager:
I can see all other things configured except Encryption Keys(blue sign)
Initialization(Grey sign) and Execution Acct(Yellow sign)
My windows Service Identity is using :
NT AuthorityNetworkService
Builtin Acct :NetworkService

Web Service Identity :-
ASP.NET Service Acct :- NT AuthorityNetworkService

DataBase Setup :- Credentials Type :- Service Credentials

I have also done everything from here thanks to Göran
http://stevenharman.net/blog/archive/2007/03/21/Avoiding-the-401-Unauthorized-Error-when-Using-the-ReportViewer-in.aspx

and

http://support.microsoft.com/default.aspx?scid=kb;en-us;896861
and

http://forum.k2workflow.com/viewtopic.php?t=619&


If you guys any solution for this please let me know.
I was wondering could this be a scale-out deployment issue ?

I also get the error when setting up the DataBase Setup :
Although saving the database connection info succeeded the The report server cannot access internal info about this deployment to determine whetherthe current con fig is valid for this editionThis could be a scale-out deployment and that the feature is not supported by this editionTo continue use a diff report server database or remove the encription keys



My Error log file is below:-
w3wp!webserver!5!16/05/2007-14:52:46:: i INFO: Reporting Web Server started
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing ConnectionType to '0' as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing IsSchedulingService to 'True' as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing IsNotificationService to 'True' as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing IsEventService to 'True' as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing PollingInterval to '10' second(s) as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing WindowsServiceUseFileShareStorage to 'False' as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing MemoryLimit to '60' percent as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing RecycleTime to '720' minute(s) as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing MaximumMemoryLimit to '80' percent as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing MaxAppDomainUnloadTime to '30' minute(s) as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing MaxQueueThreads to '0' thread(s) as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing IsWebServiceEnabled to 'True' as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing MaxActiveReqForOneUser to '20' requests(s) as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing MaxScheduleWait to '5' second(s) as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing DatabaseQueryTimeout to '120' second(s) as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing ProcessRecycleOptions to '0' as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing RunningRequestsScavengerCycle to '60' second(s) as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing RunningRequestsDbCycle to '60' second(s) as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing RunningRequestsAge to '30' second(s) as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing CleanupCycleMinutes to '10' minute(s) as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing DailyCleanupMinuteOfDay to default value of '120' minutes since midnight because it was not specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing WatsonFlags to '1064' as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing WatsonDumpOnExceptions to 'Microsoft.ReportingServices.Diagnostics.Utilities.InternalCatalogException,Microsoft.ReportingServices.Modeling.InternalModelingException' as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing WatsonDumpExcludeIfContainsExceptions to 'System.Data.SqlClient.SqlException,System.Threading.ThreadAbortException' as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing SecureConnectionLevel to '0' as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing DisplayErrorLink to 'True' as specified in Configuration file.
w3wp!library!5!16/05/2007-14:52:46:: i INFO: Initializing WebServiceUseFileShareStorage to 'False' as specified in Configuration file.
w3wp!resourceutilities!5!16/05/2007-14:52:46:: i INFO: Reporting Services starting SKU: Standard
w3wp!resourceutilities!5!16/05/2007-14:52:46:: i INFO: Evaluation copy: 0 days left
w3wp!resourceutilities!5!16/05/2007-14:52:46:: i INFO: Running on 1 physical processors, 2 logical processors
w3wp!runningjobs!5!16/05/2007-14:52:46:: i INFO: Database Cleanup (Web Service) timer enabled: Next Event: 600 seconds. Cycle: 600 seconds
w3wp!runningjobs!5!16/05/2007-14:52:46:: i INFO: Running Requests Scavenger timer enabled: Next Event: 60 seconds. Cycle: 60 seconds
w3wp!runningjobs!5!16/05/2007-14:52:46:: i INFO: Running Requests DB timer enabled: Next Event: 60 seconds. Cycle: 60 seconds
w3wp!runningjobs!5!16/05/2007-14:52:46:: i INFO: Memory stats update timer enabled: Next Event: 60 seconds. Cycle: 60 seconds
w3wp!library!5!05/16/2007-14:52:48:: i INFO: Call to GetPermissions:/
w3wp!library!5!05/16/2007-14:52:48:: i INFO: Catalog SQL Server Edition = Standard
w3wp!library!5!05/16/2007-14:52:48:: e ERROR: Throwing Microsoft.ReportingServices.Diagnostics.Utilities.ReportServerServiceUnavailableException: The Report Server Windows service 'ReportServer' is not running. The service must be running to use Report Server., ;
Info: Microsoft.ReportingServices.Diagnostics.Utilities.ReportServerServiceUnavailableException: The Report Server Windows service 'ReportServer' is not running. The service must be running to use Report Server.
w3wp!library!5!05/16/2007-14:52:48:: e ERROR: Throwing Microsoft.ReportingServices.Diagnostics.Utilities.ReportServerServiceUnavailableException: The Report Server Windows service 'ReportServer' is not running. The service must be running to use Report Server., ;
Info: Microsoft.ReportingServices.Diagnostics.Utilities.ReportServerServiceUnavailableException: The Report Server Windows service 'ReportServer' is not running. The service must be running to use Report Server.
w3wp!library!5!05/16/2007-14:52:49:: e ERROR: Throwing Microsoft.ReportingServices.Diagnostics.Utilities.ReportServerServiceUnavailableException: The Report Server Windows service 'ReportServer' is not running. The service must be running to use Report Server., ;
Info: Microsoft.ReportingServices.Diagnostics.Utilities.ReportServerServiceUnavailableException: The Report Server Windows service 'ReportServer' is not running. The service must be running to use Report Server.
w3wp!library!5!05/16/2007-14:52:49:: e ERROR: Throwing Microsoft.ReportingServices.Diagnostics.Utilities.ReportServerServiceUnavailableException: The Report Server Windows service 'ReportServer' is not running. The service must be running to use Report Server., ;
Info: Microsoft.ReportingServices.Diagnostics.Utilities.ReportServerServiceUnavailableException: The Report Server Windows service 'ReportServer' is not running. The service must be running to use Report Server.