nope - this is just not happening.
I created a new domain account - ordinary user.
Using KB doc I changed the account SQL Server logs in as - to above user.
I add user to SQL Server and give it sysadmin privs
I add it to the database and reportserver dbs with public and rsexec permissions
I add the user to reporting services - via http://localhost/reports/ --Properties wth browse permissions - error below
except=System.Web.Services.Protocols.SoapException: The permissions granted to user 'DOMAIN\SQLService' are insufficient for performing this operation. ---> Microsoft.ReportingServices.Diagnostics.Utilities.AccessDeniedException: The permissions grante
d to user 'DOMAIN\SQLService' are insufficient for performing this operation.
at Microsoft.ReportingServices.WebServer.ReportingService2005Impl.FireEvent(String EventType, String EventData)
at Microsoft.ReportingServices.WebServer.ReportingService2005.FireEvent(String EventType, String EventData)