If you are using BIDS to develop reports for Reporting Services in SharePoint Integrated mode, you may find some of the deployment options somewhat confusing. Paths in Native mode must be relative, white in integrated mode, they must be absolute. To get to the deployment options, you right click on the project from the Solution Explorer window, and select Properties.
The highlighted areas are the ones that we need to be concerned with. The TargetServerURL property is the most important of the bunch, as you are essentially telling Visual Studio where to find the Reporting Services Web Service. The value that you select here should be the root of the site collection where the report is contained. Basically, because the SharePoint front end is now the report server this makes sense, and the property makes sense in native mode, but for integrated mode this property should be called TargetSiteCollectionURL.
The xxxFolder parameters all behave the same way, and they should contain the complete path to the container for each one (which easily could be the same value). The path should include everything including http, the site collection,the path to the site,the library, and if used, the SharePoint folder. In integrated mode, if you replace folder with Library, or even better, path, this will make more sense.