I got this working with out removing any patches. The above patch was not working too. Finally what I did was on the IIS server install the following patch and reset / restart the IIS server. This is not for report manager application. This is for any ASP.NET Web application developed in .net3.5 using VS2008 http://www.microsoft.com/downloads/details.aspx?familyid=6AE0AA19-3E6C-474C-9D57-05B2347456B1&displaylang=en