When I told users to view reports in Project portal after setting them as Readers/ Contributors in TFS project portal setting, they complained that they can not see any report and get this error:

The permissions granted to user 'Domain\UserId' are insufficient for performing this operation. (rsAccessDenied).

There are lots of info about this error from SQL Server 2005 standpoint. But when I am trying to give users access to TFS team projects, what extra things I have to do for them being able to see the reports.

Unfortunately, in V1 you have to separately control permissions between TFS and Reporting. In this case, the error is coming from reporting services (the "rs" part of "rsAccessDenied") so you'll want to use the Reporting interface (http://server/Reports) to grant them permission.

However, there is also a "power toy" kind of tool that can make it easier to do permissions admin. It's not supported, but it does seem to work for many customers and do a good job of helping keep the permissions in sync.

http://www.codeplex.com/Wiki/View.aspx?ProjectName=TFSAdmin