In order to install SQL 2005 Reporting Services on IIS7 additional components are required to be installed to support IIS6 backwards compatibility.
Ensure the Web Server (IIS) role and the following role services are installed.
Internet Information Services
— IIS 6 WMI Compatibilty
— IIS Metabase and IIS6 configuration compatibility
— .NET Extensibility
— ASP.NET
— ISAPI Extensions
— ISAPI Filters
— Default Document
— Directory Browsing
— HTTP Redirection
— HTTP Errors
— Static Content
— Request Filtering
— Windows Authentication
— HTTP Logging
— Request Monitor