Well, I don't understand why we are trying to republish the reports if the reports are already showing there. So from this thread what I understand that the behavior is changed in CRM 2011, is this upgrade from CRM 4.0 to CRM 2011 or a new installation of CRM 2011. If upgrade can you create a new org and upload the report .rdl files for which you are facing the issues in the new org and see if this is the same behavior. Also please share the screenshot that will be more helpful.
Thanks,