I finally figure this out as not a single site could get it right or even get a response. I put this up on my blog (basically a digital remind of things like this that I find.) Let me know if this resolves your problem.
http://criticalstatus.blogspot.com/
To connect to a Report Server from Management Studio, there are a few things to consider.
First, I can not connect to an RS 2000 instance. I'll keep trying. Second, make sure the machine is functional. That really helps too. 🙁 IT can be a real time killer LOL Last, I have read many a sites/posts all of which say use the syntax for a servername as:
What I found that truly works is http://reports_web_site/reportserver
* reports web site example --> rptsvrname.yoursite.com i.e. the url you give your report server in IIS.
* reportserver --> the actual text "reportserver "