This error sounds like a local machine problem. "Access is denied" usually refers to permission related problem. Installing Telerik Reporting and running Visual Studio requires administrative privileges, so please log-in as administrator or acquire needed rights. If you're already logged in as Administrator maybe the permissions of the Administrator account are messed up - can you run your application on another machine and verify whether the error persists?
If it does, please open a support ticket and provide us with a sample project that exhibits the problem and we would advise you accordingly.
the Telerik team
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