The report server has encountered a configuration error. (rsServerConfigurationError)

After installing Sql Server 2008 with Reporting Services on Windows XP I needed to do some initial configuration to make it work locally:

1. Open Configuration Manager
   Go to: Microsoft Sql Server 2008 > Configuration Tools > Reporting Services Configuration Manager


2. Configure Web Service Url
   I used the default values suggested by configuration manager. To do that simply choose 'Apply'. Result:


3. Configure Report Manager Url
   Again, I used the default values:
   
   
   

After doing that I tried to to access: http://localhost/Reports
In my case I got displayed the following error:
The report server has encountered a configuration error. (rsServerConfigurationError).
To get rid of this I needed to perform to 2 extra steps:

1. Define database to use
   I created a new database for Reporting Services using the same configuration manager:
   
   
   
2. Set folder security
   Now check which account is used by reporting services:
   
   ...and grant access for that user to the Reporting Services installation folder. In my case it is:
   C:\Program Files\Microsoft SQL Server\MSRS10.MSSQLSERVER\Reporting Services

After doing that I can access my Report Manager with no problems.