When a SharePoint site is restored from a box on one domain to another, the users from
the old domain get carried over to the new domain, even though the new machine does not know
these users from the previous domain.

When Report Server is involved, sometimes, this can result in an error as follows:

Report Server has encountered a SharePoint error. (rsSharePointError) Get Online Help

• User cannot be found.

The solution (copied from TechNet forums – and which worked for us a couple of times as well is as follows:

1. Open SQL Profiler and set up a trace on the target SharePoint Content DB (you can set a filter for DatabaseName)
2. Start SQL Profiler trace.
   
3. Open the ReportServer Site in a browser.
   
4. Go back to the SQL Profiler Trace. You should see, somewhere, a string which looks like the following
   proc_SecGetPrincipalById <GUID>,<INT_1>,<INT_2>,<INT_3>

   where:
   <GUID> of your Sharepoint site.
   <INT_1> user id in UserInfo table that cannot be found and has to be "really" deleted
   

5. Run  the following SQL against the SharePoint Content DB in question:
   SELECT * FROM UserInfo WHERE tp_SiteID = <GUID> AND tp_ID = <INT_1>
   
6. If tp_Deleted = 1 you can set it to 0 with an UPDATE command:
   UPDATE UserInfo SET tp_Deleted = 0 where TP_Id = <INT_1> AND tp_SiteID = <GUID>
   
7. If the error persists, repeat steps 3 through 6 as there may be more than one old user carried across

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