Here's a cool find created by Dennis Donahoe, a Senior Support Engineer from out Charlotte, NC office. If you're running into problems getting reporting installed then this may be your issue:
During the install of Microsoft Systems Management Server (SMS) 2003 Service Pack 2 (SP2) or Service Pack 3 (SP3), or System Center Configuration Manager 2007 Service Pack 1 (SP1) you may experience the following symptoms:
This problem can occur because of the addition of an Alternate Data Stream :Zone.Identifier:$DATA attached to either Reportinginstall.exe or RPSetup.exe. There are various circumstances where the extraction and copying of the Service Pack Files causes the addition of the ADS extensions and these are described in KB303650. The ADS addition causes the file to be identified as a file downloaded from the Internet and the system processes it as per the Zone 3 (Internet) rules on that system. This may prevent the file from executing. When this happens, the reporting install will timeout and the site component manager will spawn another process for the install which repeats the sequence.
To resolve this problem, follow one of these steps:
1. Locate the RPSetup.exe and the Reportinginstallation.exe files (normally in the i386 directory of the SMS or SCCM installation directory.
For each of the 2 files:
a. Right click on the file and select properties
b. On the general tab select unblock and click apply.
2. Download and extract Streams from http://technet.microsoft.com/en-us/sysinternals/bb897440.aspx
a. From a command Prompt run Streams X:\xxxxx\bin\i386 (where x:\xxxx is the location of the files). You Should get a return of "X:\XXXXXX\bin\i386\reportinginstall.exe: :Zone.Identifier:$DATA 26" or "X:\xxx\bin\i386\rpsetup.exe: :Zone.Identifier:$DATA 26"
b. Run Streams -d E:\SMS\bin\i386\reportinginstall.exe or Streams -d E:\SMS\bin\i386\rpsetup.exe as required.
J.C. Hornbeck | Manageability Knowledge Engineer