GarthMJ, can you explain? Are you saying that the technet forum post I found doesn't apply to CM2012?
I believe I tested exactly what you are saying, but maybe I misunderstand.
I installed Sql Server Reporting Service role on my primary server, I added the Reporting Services role on the primary server, and when configuring the Reporting Services role I pointed it to the CM database, which currently lives on my SCOM server.
That's when I'm getting the error message above if I try to create a report.