If your own local machine is a server, enter localhost and NOT local or (local). After that at least I got a better error - no report servers were found. link - http://social.msdn.microsoft.com/Forums/sqlserver/en-US/050011a9-8600-4e4f-9455-706469c9b520/no-report-servers-were-found-on-the-specified-machine-sql-server-2005-and-windows-server-2008?forum=sqlreportingservices
Next, I tried this -
Start > All Programs > Microsoft SQL Server 2008R2 > Configuration Tools > SQL Server Configuration Manager Make sure the "Reporting Service" service is listed in the service list, and it is running. Nothing found. I saw an error - the remote procedure call failed 0x800706be, under the SQL server services node.
I finally decided that I had to reinstall the whole BI stack. Perhaps you can save yourself the headache by uninstalling SSRS only and reinstalling it. If you don't have the installation files, you're probably screwed.
The link I used - http://www.soheib.com/technical-knowledge/how-to-install-sql-server-reporting-services-2008-on-a-virtual-machine/
On the install window, choose whatever options you want till you get to this screen -
14) Next is server configuration which asks you to associate an Account to use for the Reporting Services. I am choosing SYSTEM (You can also create a separate account), click Next:
15) Choose Install, but do not configure the report server and click Next:
Finally, follow all the steps to complete the installation yourself.
NOTE - If you have SS2012 also in your system like I did, then you will continue to get the error 0x800706be I mentioned above. To fix that you MUST upgrade SS2008 to Service Pack 1 or higher.