I created a new differencing disk of a CRM virtual machine today and I had some troubles getting Reporting services up and running. The service simply wouldn't start. I had previously used the same virtual harddisk base for other systems so I found it a bit strange, it should work.
When I looked in the event viewer it showed the error "Report Server (MSSQLSERVER) cannot connect to the report server database.".
I looked around a bit on the net and found a reference to the following which helped:
I concernings increasing the timeouts of pipes in the system to 60 seconds instead of 30. This might be needed on VPC:s that are not so fast and might not get the service up and running fast enough.
Microsoft Dynamics CRM Chief Architect