target server URL : http://XXXdev002/sites/Reports

target report folder: http://XXXdev002/sites/Reports/myreports

works but only if you set the other parts you are not using to blank

so as I am not using shared datasets folder or a shared report parts folder if i remove the default setting for them I can deployreports and data connections. other wise it throws errors

following discussion is what led me to a solution

http://social.msdn.microsoft.com/Forums/sqlserver/en-US/09dd0b43-a021-47b0-a943-b58d9e199001/deploy-from-ssdt-formerly-bids-to-sql-server-2012-sharepoint-integrated?forum=sqlreportingservices