WinForms ReportViewer cannot connecto to remote Report Server (SQL Express)-Collection of common programming errors

Introduction:

I have SQL Server Express 2008 R2 installed with Advanced Services. I have created few reports using BI Design Studio and deployed them to the Server. If I access the reporting server using IE (http://Ser2008/Reports/) it works fine (I have to put in User Name/Password). I can view reports or fool around with the settings.

Problem:

On my local machine I created a winforms application with one form containing a ReportViewer control. On form load I’m running following code:

reportViewer1.ProcessingMode = ProcessingMode.Remote;
reportViewer1.ServerReport.ReportServerCredentials.NetworkCredentials = 
            new CustomCredentials("secret@123") { 
                          UserName = "administrator", 
                          Domain = "ser2008" 
            }.NetworkCredentials;

reportViewer1.ServerReport.ReportServerUrl = new Uri("http://ser2008/Reports/");
reportViewer1.ServerReport.ReportPath = "/Students/Attendance";

var l = new List();
l.Add(CreateParameter("UserId", "144"));
l.Add(CreateParameter("Class", "8"));
l.Add(CreateParameter("date_from", "2011-09-04"));
l.Add(CreateParameter("date_to", "2011-12-31"));

reportViewer1.ServerReport.SetParameters(l); //EXCEPTION THROWN HERE
reportViewer1.RefreshReport();

I get following exception:

The attempt to connect to the report server failed.  Check your connection 
information and that the report server is a compatible version. The request 
failed with HTTP status 404: Not Found.

The stack trace is as follows:

    at Microsoft.Reporting.WinForms.Internal.Soap.ReportingServices2005
                .Execution.RSExecutionConnection.MissingEndpointException
                .ThrowIfEndpointMissing(WebException e)
at Microsoft.Reporting.WinForms.Internal.Soap.ReportingServices2005
                .Execution.RSExecutionConnection.ProxyMethodInvocation.Execute[TReturn]
                      (RSExecutionConnection connection, ProxyMethod`1 initialMethod, ProxyMethod`1 retryMethod)
at Microsoft.Reporting.WinForms.Internal.Soap.ReportingServices2005.
                Execution.RSExecutionConnection.LogonUser(String userName, String password, String authority)
at Microsoft.Reporting.WinForms.ServerReport.get_Service()
at Microsoft.Reporting.WinForms.ServerReport.EnsureExecutionSession()
at Microsoft.Reporting.WinForms.ServerReport.SetParameters(IEnumerable`1 parameters)
at GridEditor.ReportViewerForm.btnRefresh_Click(Object sender, EventArgs e) 
                in D:\TestApp\ReportViewerForm.cs:line 79
at System.Windows.Forms.Control.OnClick(EventArgs e)
at System.Windows.Forms.Button.OnClick(EventArgs e)
at System.Windows.Forms.Button.OnMouseUp(MouseEventArgs mevent)
at System.Windows.Forms.Control.WmMouseUp(Message& m, MouseButtons button, Int32 clicks)
at System.Windows.Forms.Control.WndProc(Message& m)
at System.Windows.Forms.ButtonBase.WndProc(Message& m)
at System.Windows.Forms.Button.WndProc(Message& m)
at System.Windows.Forms.Control.ControlNativeWindow.OnMessage(Message& m)
at System.Windows.Forms.Control.ControlNativeWindow.WndProc(Message& m)
at System.Windows.Forms.NativeWindow.DebuggableCallback(IntPtr hWnd, Int32 msg, IntPtr wparam, IntPtr lparam)
at System.Windows.Forms.UnsafeNativeMethods.DispatchMessageW(MSG& msg)
at System.Windows.Forms.Application.ComponentManager.System.Windows.Forms.UnsafeNativeMethods.IMsoComponentManager
                        .FPushMessageLoop(IntPtr dwComponentID, Int32 reason, Int32 pvLoopData)
at System.Windows.Forms.Application.ThreadContext.RunMessageLoopInner(Int32 reason, ApplicationContext context)
at System.Windows.Forms.Application.ThreadContext.RunMessageLoop(Int32 reason, ApplicationContext context)
at System.Windows.Forms.Application.Run(Form mainForm)
at GridEditor.Program.Main() in D:\TestApp\Program.cs:line 16
at System.AppDomain._nExecuteAssembly(RuntimeAssembly assembly, String[] args)
at System.AppDomain.ExecuteAssembly(String assemblyFile, Evidence assemblySecurity, String[] args)
at Microsoft.VisualStudio.HostingProcess.HostProc.RunUsersAssembly()
at System.Threading.ThreadHelper.ThreadStart_Context(Object state)
at System.Threading.ExecutionContext.Run(ExecutionContext executionContext, ContextCallback callback
                        , Object state, Boolean ignoreSyncCtx)
at System.Threading.ExecutionContext.Run(ExecutionContext executionContext, ContextCallback callback, Object state)
at System.Threading.ThreadHelper.ThreadStart()

CustomCredentials:

public class CustomCredentials : IReportServerCredentials
{
    public string UserName { get; set; }
    public SecureString Password { get; set; }
    public string Domain { get; set; }

    #region ctor
    public CustomCredentials(string password)
    {
        Password = new SecureString();
        foreach (char c in password.ToCharArray())
            Password.AppendChar(c);
    }
    #endregion

    #region IReportServerCredentials Members
    public bool GetFormsCredentials(out Cookie authCookie, out string userName
                    , out string password, out string authority)
    {
        throw new NotImplementedException();
    }

    public System.Security.Principal.WindowsIdentity ImpersonationUser
    {
        get { throw new NotImplementedException(); }
    }

    public System.Net.ICredentials NetworkCredentials
    {
        get { return new NetworkCredential(UserName, Password, Domain); }
    }
    #endregion
}

UPDATE:

I have found following exception also in some place in my log file:

System.Web.Services.Protocols.SoapException: The path of the item 
'/Students/Attendance/_vti_bin/ListData.svc/$metadata' is not valid. The full 
path must be less than 260 characters long; other restrictions apply. If the 
report server is in native mode, the path must start with slash. ---> 
Microsoft.ReportingServices.Diagnostics.Utilities.InvalidItemPathException:
The path of the item '/Students/Attendance/_vti_bin/ListData.svc/$metadata' is 
  not valid. The full path must be less than 260 characters long; other 
  restrictions apply. If the report server is in native mode, the path must 
  start with slash.
at Microsoft.ReportingServices.WebServer.ReportingService2005Impl
      .GetPermissions(String Item, String[]& Permissions)