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REP-501 typically means that Oracle Reports are unable to locate any available Oracle Databases. By default, Oracle Reports (similar to Oracle Forms) will only look for available databases in tnsnames.ora. Not only that, but the Reports environment by default will always look for the tnsnames.ora file in %ORACLE_INSTANCE%\config ($ORACLE_INSTANCE/config in Unix). I have seen these scenarios happen before especially if the TNS_ADMIN variable for your Forms environment variables is a directory different from %ORACLE_INSTANCE%\config. This would be the first place I would look.
If tnsnames.ora is located in %ORACLE_INSTANCE%\config, do all generated reports fail with this message or a select amount of them? If only a select amount of them, are there any similarities with these reports (e.g, size, parameters, etc.)?