Ahhhh.. I think I see your problem. You enabled anonymous authentication. It is not recommended that you enable this.

Disable that.

Apply the settings and then be sure you log in as a local admin. Navigate to http://localhost/reports

Attached is a screenshot of my settings they are "out of the box" and should work fine for now. If you want to go back in and change it later on, then great, but I think you are trying to load it for the first time right?