Issue with calling a SharePoint 2010 SOAP function in SSRS report

I have several reports that were converted from SSIS/SSRS 2005 to SSIS/SSRS 2008. The data sources for these reports are tested and working and the reported have been configured to use them. However, in these reports a data set that uses an XML source is having issues. We are getting this error:

An error has occurred during report processing. ---> Microsoft.ReportingServices.ReportProcessing.ProcessingAbortedException: An error has occurred during report processing. ---> Microsoft.ReportingServices.ReportProcessing.ReportProcessingException: Query execution failed for dataset 'UserDivision'. ---> Microsoft.ReportingServices.DataExtensions.XmlDP.XmlDPException: Failed to execute web request for the specified URL. Soap Fault: Server was unable to process request. ---> Attempted to perform an unauthorized operation. ---> System.Exception: For more information about this error navigate to the report server on the local server machine, or enable remote errors

When I have run the report locally in MS BIDS 2008 i get this error:

An error occurred during local report processing.
An error has occurred during report processing.
Query execution web request for the specified URL.
SOAP Fault:
Server was unable to process request. ---> Attempted to perform an unauthorized operation.
The remote server returned an error: (500) Internal Server Error.
<?xml version="1.0" encoding="utf-8"?><soap:Envelope xmlns:soap="http://shemas.xmlsoap.org/soap/envelope/" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
xmlns:xsd="http://www.w3.org/2001/XMLSchema"><soap:Body><soap:Fault><faultcode>soap:Server</faultcode><faultstring>Server was unable to process request. --&gt; Attempted to
perform an unauthorized operation. </faultstring><detail/></soap:Fault></soap:Body></soap:Envelope>

The code that is believed to be causing the error is this:

<DataSet Name="UserDivision">
      <Query>
        <DataSourceName>UserStoreDivision</DataSourceName>
        <QueryParameters>
          <QueryParameter Name="AccountName">
            <Value>=User.UserID.ToString()</Value>
          </QueryParameter>
        </QueryParameters>
        <CommandText>
                &lt;Query&gt;
                    &lt;SoapAction&gt;http://microsoft.com/webservices/SharePointPortalServer/UserProfileService/GetUserProfileByName&lt;/SoapAction&gt;
                    &lt;ElementPath IgnoreNamespaces="True"&gt;GetUserProfileByNameResponse{}/GetUserProfileByNameResult{}/PropertyData{Name, Values}&lt;/ElementPath&gt;
                &lt;/Query&gt;
            </CommandText>
        <rd:UseGenericDesigner>true</rd:UseGenericDesigner>
      </Query>
      <Fields>
        <Field Name="Values">
          <DataField>Values</DataField>
          <rd:TypeName>System.String</rd:TypeName>
        </Field>
        <Field Name="Name">
          <DataField>Name</DataField>
          <rd:TypeName>System.String</rd:TypeName>
        </Field>
        <Field Name="ParsedValue">
          <Value>=iif(len(Fields!Values.Value)&gt;178, Mid(Fields!Values.Value, InStr(Fields!Values.Value, "&lt;Value ") + 83, InStr(Fields!Values.Value, "&lt;/Value&gt;") - Instr(Fields!Values.Value, "&lt;Value ") - 83), nothing)</Value>
        </Field>
      </Fields>
      <Filters>
        <Filter>
          <FilterExpression>=Fields!Name.Value</FilterExpression>
          <Operator>Equal</Operator>
          <FilterValues>
            <FilterValue>Division</FilterValue>
          </FilterValues>
        </Filter>
      </Filters>

Does anyone understand what could be going on?