You are running ConfigMgr 2012 RTM and SQL 2008 R2.
You navigate to the Reports Node and right click, selecting ‘Create Report’
You receive the following error
This is because you have installed SQL 2008 R2 which ships with Report Builder 3.0…..By default ConfigMgr 2012 uses Report Builder 2.0
After digging around in the registry I found that modifying the following registry key allows ConfigMgr 2012 to invoke Report Builder 3.0 from the console.
Look for String ReportBuilderApplicationManifestName and Change the value for ReportBuilder_2_0_0_0.application to ReportBuilder_3_0_0_0.application
I am not sure of the supportability of this, but it works…
Important to note the registry location for the console described by David above, Wow6432Node, this is because the ConfigMgr 2012 Console is a 32-bit application.