on report server authentication and authorization both working fine.In report builder authencated properly but its not authorizedm, it shows all the folders and reports on report server which has a not rights. how to restrist the user to see my reports on "XYZ" Folder?

You want the user to see only reports in XYZ folder? this is a time consuming process, and everytime you add a user, you need to be careful about doing the steps below: 1. For each folder, right from parent folder (Report Manager), under security, Add the users who needs to see that folder 2, Give them the proper role 3. Repeat this for all the child folders With this, the user will be able to see the listing, but not the content inside the folders, unless they are explicitly given access. http://technet.microsoft.com/en-us/library/ms156014(SQL.90).aspx

I have already done this but it works in report server but in report builder it is not working. I have made Forms authentication on Report Server. when we open the report server using url like "http://reportservername/reports" and login with credentials its authenticate properly and when I open any folder which has not rights for that user it give me error like "you do not have permission", but same thing not done with Report builder? why these problem occurs in Report Builder?

http://msdn.microsoft.com/en-us/library/ms365173.aspx The article above lists the steps related to security of the report builder. You need to change the role permissions for the users or create custom roles that give only the required rights.

It does not matter if they see the name, they should not be able to read the rdl file or execute it or edit it.