I created a sub-report in Report Builder 2. It works fine in Report Manager, but it shows the following error in Report Builder 2.0
This report cannot be run in report builder because it contains one or more embedded data sources with credential options that are not supported. Instead of embedded data sources use shared data sources or save and view the report on the server.
This may be a bug. See the blog below.
http://blog.hoegaerden.be/2009/09/12/report-builder-2-0-cannot-switch-data-source/