You receive an error message when you use SQL Server 2008 Reporting Services: “HTTP 401.1 – Unauthorized: Logon Failed”

Symptoms
Consider the following scenario that occurs when you use Microsoft SQL Server 2008 Reporting Services:You try to access Report Manager or Report Server by using a URL that resembles one of the following URLs:
http://name/reports
https://name/reportsNote The name placeholder is not the name of the computer on which Report Server and Report Manager are deployed.However, the DNS Client service, the computer’s hosts header files, or the computer’s Lmhosts files that are located in the C:\WINDOWS\system32\drivers\etc folder are configured to send requests to name back to the report server computer.You try to access Report Server directly by using one of the following URLs. When you do this, you experience no problems. Additionally, you can browse the Report Server namespace and view all reports by using the following URLs:
http://name/reportserver
https://name/reportserverThe ReportServerUrl element is specified in the Rsreportserver.config file and is set to resemble one of the following URLs:
http://name/reportserver
https://name/reportserverYou try toaccess Report Manager by using one of the following URLs:
http://name/reports
https://name/reportsIn this scenario, you receive what resembles the Report Manager user interface. However, where you expect to see a list of reports, you receive the following error message:

HTTP 401.1 – Unauthorized: Logon FailedNote If you use SharePoint Integrated mode, you receive the error message on the SharePoint Webpages. The symptoms in this scenario are most likely to occur when one of the following conditions is true: Reporting Services is deployed in a scale-out deployment.Reporting Services is accessed by using a user-friendly name that does not match the computer name.
Resolution
This problem occurs because Windows includes a loopback check security feature that helps prevent reflection attacks on your computer. Therefore, authentication fails if the FQDN or the custom host header that you use does not match the local computer name.