A helpful list of steps to enable IIS 7 for a Reporting Services 2005 install.

http://www.igregor.net/post/2008/01/Installing-SQL-Server-2005-Reporting-Service-on-IIS-7.aspx

The microsoft list is a little more thorough, telling you what’s needed in the IIS config afterwards (classic .net appPool).

http://support.microsoft.com/kb/934164