Installing SQL Server 2008 R2
At a minimum, install the database engine and reporting services. By installing SQL Server first you have the option of specifying the database engine that SharePoint will use. Alternatively you can install SharePoint and allow it to install its own instance of SQL Server Express (now called SQL Server Embedded Edition). There are two steps I want to highlight in the SQL Server 2008 R2 installation: Setup Role and Reporting Services Configuration.
In the Setup Role step, choose SQL Server Feature Installation as shown below:
In the Reporting Services Configuration step, choose Install the SharePoint Integrated mode default configuration. This allows the install to do the majority of the work, limiting the steps that you will need to perform to get Reporting Services integrated with SharePoint.
Installing SharePoint 2010
In order to successfully install SharePoint, there are a number of prerequisites that must be installed. When you launch the SharePoint 2010 setup, make sure to first click Install software prerequisites. After clicking Install software prerequisites.
Note that this step will automatically install anything that you need from the list of required products and updates. In order to run Reporting Services in SharePoint Integrated mode, you need the SQL 2008 R2 Reporting Services SharePoint 2010 Add-in; this will be done for you.
The Standalone option is perfect for getting going quickly; it installs the software with all default settings. While this approach requires the least amount of effort on your part, it does install an instance of the SQL Server Embedded Edition that can only be used by SharePoint; i.e. you can't leverage this SQL Server instance for the Reporting Services database. In addition you truly get a standalone instance of SharePoint; you cannot add any other SharePoint servers. Despite these limitations, I'm going to proceed with the Standalone option.
When the SharePoint 2010 Foundation installation is completed, you will be prompted to run the SharePoint Products Configuration Wizard. You need to do that to in order to complete the configuration steps required to have a working installation of SharePoint 2010 Foundation. When the SharePoint Products Configuration Wizard is finished, your browser will open to the SharePoint Team site that has been created for you.
Configuring Reporting Services SharePoint Integration
At this point we have Reporting Services 2008 R2 and SharePoint 2010 Foundation installed. The next step is to configure Reporting Services SharePoint integration using SharePoint Central Administration. Launch SharePoint Central Administration from the Start menu (it should be pinned to the Start menu; if not then select it from All Programs, Microsoft SharePoint 2010 Products group). Click General Application Settings and then Click Reporting Services Integration as shown below:
Note that the Reporting Services options shown above will only appear after the SQL 2008 R2 Reporting Services SharePoint 2010 Add-in is installed. I installed the add-in by running the Install software prerequisites option before installing SharePoint.
There are just a couple of things that you need to enter to complete the integration as shown below: