Setup requires SQL Server Reporting Services 2005 Hotfix for role creation on SQL Reporting Service SP2 Workgroup edition at the specified Reporting Services Report Server http://CRMServer/reportserver.
I found it fairly difficult to locate this elusive hotfix. So for anyone else looking for it.. Request your hotfix from http://support.microsoft.com/kb/936305.
Now, before everybody gets up in arms about the idea of "Requesting a hotfix", you should be aware that although Microsoft Dynamics CRM hotfixes are not so freely available to download, they are simple to aquire. Just make your request from the Microsoft Dynamics CRM Hotfix site, and within seconds the download link and password(if applicable) will be emailed to you.