The report server instance is not configured correctly. Please use the Reporting Services Configuration tool to create the Sharepo first
When configuring Reporting Services integration in Central Administration, report the following error
The report server instance is not configured correctly. Use the Reporting Services Configuration tool to create a report server database for SharePoint integrated mode before you set integration options for this SharePoint Web application.
This means that the Reporting Services Configuration Manager database uses the default database, and the SharePoint integration database is not created
Create a new database, select SharePoint integration mode
Default connection to database server configuration, click Next
Credentials Use the default authentication type
When you're done, you won't have this error.
Go to: http://www.cnblogs.com/myheaven/archive/2012/05/11/2496641.html
SharePoint Reporting Services Report Server instance is not configured correctly for workaround