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I have a Sharepoint server 2010 Enterprise in a public domain and a SQL2008 standard in a local domain (with an installation of sharepoint 2010 to support report integration). Does Microsoft support this setup in report server configuration?

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SSRS needs to be installed on the SharePoint Server, not the Database Engine. However, given the SSRS user has the appropriate rights on the SQL Server, yes that would be supported.

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We got it integrated with the original setup finally. It was a networking issue. – user7400 May 1 '12 at 16:19
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Yes, Microsoft does. After opening a ticket with them and working with them for almost 3 days, we figured it was a networking problem (a WMI issue to be specific). Once this was taken of, the integration was a gimme.

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