While trying to generate the report when you click on search button for findings objects \ groups you get the following error.
Application: System Center Operations Manager 2007
Application Version: 6.0.6278.0
Message: Login failed for user ‘NT AUTHORITY\ANONYMOUS LOGON’
This error comes on the console screen as well as on the SQL server event viewer Event ID: 18456.
The SQL error log will show
2009-07-21 16:11:46.34 Logon Error: 18456, Severity: 14, State: 11.
2009-07-21 16:11:46.34 Logon Login failed for user ‘NT AUTHORITY\ANONYMOUS LOGON’. [CLIENT: <RMS SERVER IP ADDRESS>]
When checked and found that the SDK and Config are running with the local system account. We changed it to domain account as the Database server was in a different server and as per the link http://technet.microsoft.com/en-us/library/bb432146.aspx it is better to use domain account.
NOTE: If the root management server and the Operations Manager database are on different computers, the SDK and Config Service account will need to be changed to a domain account. For better security, we recommend that you use an account different from the one used for the Management Server Action Account. To change these accounts, see the topic How to Change the SDK and Config Service Accounts in Operations Manager 2007 in this guide and a Knowledge Base article at http://go.microsoft.com/fwlink/?LinkId=112435
We followed the following KB to change it to the domain account http://support.microsoft.com/kb/936220 and after that everything started working fine.