Creating standard reports fails because Excel is not installed, the Excel install is not complete or the service has insufficient privileges.
Information
Generating reports and or distributing reports will not complete successfully.
Possible reasons the report can not be generated are:
Go to Start > Run and type Excel
If Excel launches with dialog boxes requiring user interaction, address the prompts. Once complete, close Excel and try Start > Run > type Excel again. If Excel launches without dialogs, the report SHOULD generate. If the report still does NOT generate, login to the server as the account associated to the Reporting Service and repeat the steps above. If Excel is not installed on the server, please install a licensed version of excel on the server. Once complete confirm Excel can be launched from Start > Run > type Excel with dialogs.
Other causes of this error can be found in this KB article.
NOTE: In order for reports to generate successfully, excel needs to be launched and activated prior to the report generation.
CCM