This will do it:
IF OBJECT_ID('tempdb..#TempTable') IS NOT NULL
DROP TABLE #TempTable
CREATE TABLE #TempTable
(
[ReportHistoryID] [int] IDENTITY(1,1) NOT NULL
,[Report_id] [int] NOT NULL
,[Report_status_id] [int] NOT NULL
,[modified_by] [int] NOT NULL
,[last_modified] [datetime] NOT NULL DEFAULT (GETDATE())
,PRIMARY KEY (ReportHistoryID)
,UNIQUE (ReportHistoryID)
)
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (1,1,15387,'Jul 31 2008 1:31AM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (1,2,15387,'Dec 3 2003 10:27AM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (1,1,15387,'Dec 15 2003 7:09AM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (1,2,15387,'Dec 9 2003 5:41PM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (1,1,15387,'Dec 13 2003 11:37AM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (2,1,16836,'Dec 11 2003 10:52AM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (2,2,16836,'Dec 11 2003 5:06PM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (3,1,17509,'Dec 19 2003 8:49PM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (3,2,17509,'Dec 12 2003 12:23PM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (3,1,17509,'Dec 12 2003 1:40PM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (3,2,17509,'Dec 12 2003 2:32PM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (4,1,17221,'Dec 12 2003 1:51PM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (4,2,17221,'Dec 12 2003 2:22PM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (4,1,17221,'Dec 12 2003 2:30PM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (5,1,17257,'Dec 12 2003 3:53PM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (5,2,17257,'Dec 12 2003 4:24PM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (5,1,17257,'Dec 16 2003 2:27PM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (5,2,17257,'Dec 16 2003 3:38PM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (5,1,17257,'Dec 18 2003 2:10PM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (5,2,17257,'Dec 19 2003 12:23PM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (5,1,17257,'Dec 19 2003 3:17PM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (6,1,18019,'Dec 19 2003 3:05PM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (7,1,17111,'Dec 19 2003 4:58PM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (8,1,18010,'Dec 19 2003 5:34PM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (9,1,17773,'Dec 22 2003 10:35AM')
INSERT INTO #TempTable (Report_id, Report_status_id, modified_by, last_modified) VALUES (9,2,17773,'Dec 23 2003 5:05AM')
SELECT
Sub1.ReportHistoryID
,t1.Report_id
,t1.Report_status_id
,t2.Report_status_id AS Prev_status_id
,t1.modified_by
,t1.last_modified
FROM
(
SELECT
MAX(rh1.ReportHistoryID) AS ReportHistoryID
FROM
#TempTable AS rh1
GROUP BY
rh1.modified_by
) AS Sub1
INNER JOIN
#TempTable AS t1
ON Sub1.ReportHistoryID = t1.ReportHistoryID
INNER JOIN
#TempTable AS t2
ON t1.ReportHistoryID = t2.ReportHistoryID + 1
WHERE
t1.Report_status_id = 1
AND t2.Report_status_id = 2
Output:
ReportHistoryIDReport_idReport_status_idPrev_status_idmodified_bylast_modified
5112153872003-12-13 11:37:00.000
14412172212003-12-12 14:30:00.000
21512172572003-12-19 15:17:00.000