Report subscription and Failure sending mail:

I am using Reporting Services 2005. SP1 is applied (version 9.0.2047). I configured one of the reports with subscription and sending
report via email. I used Report Manager to setup the report subscriptions,
but I get the following status message:

"Failure sending mail: The Report Server has encountered a configuration
error; more details in the log files"

The log file contains the following:

ERROR: Throwing
Microsoft.ReportingServices .Diagnostics.Utilities.ServerConfigurationErrorE-xception: The Report Server has encountered a configuration error. See the report server log files for more information., AuthzInitializeContextFromSid: Win32 error: 110;

Any ideas?

I am also getting the error on SQL Server 2005 with SP1 and am currently trying to get the email working.

The only bit of extra information I can give is that when I do

net helpmsg 110

I get: The system cannot open the device of file specified.

As yet, I have no idea what device or file report server is trying to open.

I'll update this message if I figure this out.