SOLVED: Reporting Services error: Cannot impersonate user for data source ‘TfsReportDS’ (rsErrorImpersonatingUser)

Getting this error (and your TFS is installed on a Domain Controller)?

Problem:

An error has occurred during report processing. (rsProcessingAborted)
Cannot impersonate user for data source ‘TfsReportDS’. (rsErrorImpersonatingUser)
Logon failed. (rsLogonFailed)
Logon failure: the user has not been granted the requested logon type at this computer. (Exception from HRESULT: 0x80070569)

Solution:

Make sure that the local policy of the DC allows for login of non-admin users.

(Domain Controller Security Policy > Local Policies | User Rights Assignment | "Allow log on locally" policy and add domain users.

(Thanks to Carl Daniel who wrote about the solution in the MSDN Forums.)

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