If you ever need to display SharePoint images from a Picture Library into a SQL report, you need to understand how SharePoint and SQL reporting services authenticate images. There are 2 ways to allow SharePoint and SQL Reports to talk to each other: 1. Configure Anonymous Access on your SharePoint Site 2. Configure an Unattended Execution Account for SQL Reporting Services
Option 1: Configure Anonymous Access on your SharePoint Site
Step 1: From within SharePoint Central Administration, select Application Management and then Authentication Providers (Note: All Screen shots were taken from WSS 3.0)
Step 2: Select your SharePoint by changing web application
Step 3: Select Default, Check "Enable for Anonymous Access" flag AND verify NTLM authentication is checked.
Option 2: Configure Unattended Execution Account for SQL Reporting Services
Step 1: From the server where SQL reporting services is installed, open the Reporting Services Configuration Manager
Step 2: Select option for Execution Account, and select a user to run the execution account for SQL reporting Services.
The following link from SQL Books on line describes the type of users to specify when setting up the execution account for SQL reporting services:
http://msdn2.microsoft.com/en-us/library/ms156302.aspx
Good luck!
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