The found version is 'C.0.8.40'. The expected version is '162'. (rsInvalidReportServerDatabase) - SSRS 2012

This morning I was trying to create the first organization in a MS Dynamics CRM 2011 deployment and when it tried to validate the SSRS URL, it failed with this error:

The version of the report server database is either in a format that is not valid or it cannot be read. The found version is 'C.0.8.40'.  The expected version is '162'. (rsInvalidReportServerDatabase)

I navigated to the SSRS URL and I got the same error.

It turns out that the error is fairly well known and can be easily resolved. All you need to do is recreate the reports database.

1. Open Reporting Service Configuration Manager. [Start | All Programs | Microsoft SQL Server 2012 | Configuration Tools | Reporting Service Configuration Manager]
2.  Connect to the report service instance that is giving you the problem
3. Click Database.
4. Click Change Database.
5. Select Create a new report server database and follow the wizard.

This should get rid of this issue.

It would be a good idea to get rid of the old report database, to prevent any confusion, after you've backed it up, of course.