Another future KB article. As such below is a rough draft:)

 

Summary
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System Center Operations Manager 2007 (Opsmgr) and System Center Essentials 2007 (Essentials)reporting are not supported on SQL Server Reporting Services 2005 when configured in Sharepoint integration mode.

More Information
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If SQL Reporting Services is configured with its server mode configured for SharePoint integration Operations Manager Reporting and Essentials Reporting features will not work correctly. Therefore Opsmgr or Esssentials reporting features cannot share a SQL Reporting Services installation with Microsoft Sharepoint Services. The Check Prerequisites tool in Opsmgr and Essentials does not explicitly check SQL Reporting services to determine if Sharepoint integration has been enabled and therefore will not indicate a failed status.
Although the Reporting feature will pass prerequsite checking and install, reports will fail to deploy to SQL Reporting Services and the Reporting node of the administration console will return an error.

The following Operations manager event will be generated in the Operations Manager event log if Sharepoint integration is enabled:

Event ID : 31569
Source: Health Service Modules
Category: Data Warehouse
Description: Report deployment process failed to request management pack list from SQL_RS Server. The operation will be retired.
Exception 'SoapException'. System.Web.Services.Protocols.SoapException" The option is not supported on a report server that is configured to run in SharePoint integrated mode.  <remainder of event removed for clarity>

When attempting to view reports from the administration console the follow dialog will be displayed

Loading reporting hierarchy failed.
Exception 'SoapException'. System.Web.Services.Protocols.SoapException" The option is not supported on a report server that is configured to run in SharePoint integrated mode.  <remainder of event dialog text removed for clarity>

If OpsMgr or Essentials reporting has already been installed on a SQL Reporting Services where Sharepoint integration is required, the Opsmgr reporting feature will need to be reinstalled. Essentials will need to be uninstalled and reinstalled in its entirety since the reporting feature is integrated into the Essentials installation.
If SQL Reporting Services Sharepoint integration mode was configured in error during reporting services installation and there is no intention of installing Microsoft Sharepoint Services itself, it is recommended that the Opsmgr reporting feature be uninstalled if present, that SQL Reporting Services be removed and reinstalled without Sharepoint integration.
System center Essentials should be uninstalled together with SQL Reporting services and then both reinstalled without the Sharepoint integration.