Also, in an effort to rule out the trial license as the culprit here, the client is offering to purchase the single server version in hopes that this would resolve the never ending back and forth about the watermark. This is with the understanding that, if we continue to have the same issues with the product, they'll demand a refund. Please share your thoughts.
Dear Brent,
I really feel sorry for your inconvenience that the source of problem is still not identified. I have tried your shared license with my report server and it responded well. I would like to suggest you one thing before you go for purchase decision. Can you please do a fresh installation of desired SQL Server version on separate machine and test the license file. I really feel the issue will be resolved. Under the current circumstances, this is the only solution that I can offer you.
We are sorry for your inconvenience,
Looks like the license file has an expiration of 8/21/2010. Please send me a new one. We have installed a new instance and are working on testing now.