Error 500.19. MSSQL Server 2005 Reporting Services and Windows 7

I recently started working with SSRS once again after a sabbath of 4 years and tell you what....it was kinda difficult to recollect everything. Well for once I was working on a new OS with an old version of SQLServer. I installed SqlServer2005 and reporting services, the fired up the reporting services configuration editor to setup my reporting server. Following are the caveats that you need to remember for a sucessful install and initialization of reporting services.
Since SSRS uses .Net framework 2.0 do not use the default AppPool to run your reporting services (the default app pool in my case was using .Net framework 4) . It will make your life hell. To resolve this, open up IIS manager on your windows7 machine and click on your report server site. In the Actions pane click Basic Settings and then the Select button in the 'Edit Application' dialog box. This will open another dialog box that should let you change the app pool that your report server is using.
Since the report server virtual directory is installed under \%systemdrive%\Program Files (x86)\Microsoft SQL Server\MSSQL.3\Reporting Services, Windows7 will not let you run the site using the IUSR account. You will have to expressly grant the IUSR account read permission in the least. This was the reason in my case for Error 500.19.
Hope this helps. Enjoy!