I get the following message "the SQL Server Reporting services (MSSQLSERVER)service on Local Computer started and then stopped. some services stop automatically if they have no work to do, for example perfomance logs and alerts services" I manuallly stopped and then tried to restart the service and that is when it started. IIS is still running.

Can you please try the solution posted here? http://www.sqlservercentral.com/Forums/Topic186166-146-1.aspx