Report Scheduler logon failure

Hello, there is probably a simple solution for this and I have searched the forums for an answer but have not found anything so far and hope someone can shed some light on this.  I have setup a report to run in Report Scheduler and it doesn't seem to work correctly.  Basically, I have the report scheduled to run every morning at 8:00AM but when I check the status of the report, it says the following:

Logon failure: the user has not been granted the requested logon type at this computer.

I have setup a local account on the Orion server called reporter, which is setup specifically to run the reports and I have also created the same account in Orion so it can login to the web pages.

If I run the task from a Windows command line, it works and emails the report but if it runs from the Orion scheduler, I get the message above.  I've tried this with and without NT domain authentication and pretty much get the same result in Job Status.  I can provide screenshots of how the job is configured but at this point I have not been able to figure out why this will not work.  Any thoughts on this would be greatly appreciated.  Thanks.