ahhh sql reports — i mean come on this sounds like a simple parameter problem — however what seems to be the problem here is that in the report i was requesting from sql srs web services for CRM4 — you must define data source credentials with the datasource name being the datasource name on the report!!

then you get this error:

An error has occured during report processing —> Cannot create a connection to data source ‘DataSource1′ —> Guid should contain 32 digits with 4 dashes…

i’m kicking myself at this point saying WTF!!

This error occurs because the Microsoft Dynamics CRM Data Connector for Microsoft SQL Server Reporting Services requires the user’s SystemUserId value as the Log in name and the user’s OrganizationId value as the password (for the datasource credentials)..

When a report runs inside Microsoft Dynamics CRM, these values are passed automatically. These values must be entered manually when the report is run directly from SQL Server Reporting Services.

more info at: http://support.microsoft.com/kb/2006869