thnx for your reply. I have two db servers, both installed with RS 05. One can launch RM, but the other throws the VirtualDirectory error. Unfortunately I did not perform the installs. these were handled through a contracted IT support company. On the server that can launch RM, i noticed that when i launch the config tool the Initialization option can be selected, but on the server that doesn't launch RM, the Initialization option in the config tool is greyd-out and cannot be selected. Perhaps the issue extends further than simply the V directory. Would you sugeest a re-install of RS05?