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i've recently updated a few projects to VS2010 that also included updating some RDLC local reports that i use with the MS Report Viewer. My data sources are LinqToSql for each project. One project uses SQL authentication mode and works great after the update to VS2010. However, the two projects that use Windows Authentication have been giving the permission denied 'NT AUTHORITY\NETWORK SERVICE' error.

As a sanity check, i switched the references back to Version=9.0 for the reporting services, and used the original RDLC version 2005 and the authentication works great (with no other changes to connection, web.config, etc.). And i have triple checked that <Authentication mode="Windows"> and <identity impersonation="true"> are both there.

Is there something special that needs to be done to enable Windows Authentication mode in the 2010 version of Report Viewer?