Hi Dave,
While I appreciate your response, it is thoroughly unhelpful to the people like myself who are having this problem. It almost sounds like you're a salesman for other products. I know that's not the case (considering how many "points" you have). However, I'm under the impression that ARD does get updates, and even if a single developer is working on the product, that doesn't change the fact that apple advertises the ability to Generate Reports.
If Apple advertises the ability, then I don't suggest anyone give up on the issue by throwing up your hands, as you suggest.
Let me first say that I've been using ARD to generate reports for ~40 computers without problems for quite a long time. It has become an integral part of my workflow.
Anyway, enough of me taking out my frustration on you, here is what I've tried (to no avail... yet. I'm going to solve this if it kills me or I have to reformat my computer) :
1. Repairing permissions on the clients and the server using diskutilty. This would have been a solution since I could have rolled it out via the command line. But no dice.
2. Uninstalling & reinstalling ARD admin (http://support.apple.com/kb/HT2577). I'm unable to fully install, however, since my user list is automatically repopulated.
3. Restarting the service on clients using kickstart (http://support.apple.com/kb/HT2370). This changes nothing.
I've checked the console, and I did (before removing ARD via KBHT2577) get the error "Encryption key not found for client." I no longer get that error. I've got clients on 10.6, 10.5, and 10.4. So I've tried generating reports for each to see if it affects only certain versions. When connecting to 10.5 and below, I get the error "legacy packet not allowed 111 from 127.0.0.1."
The weird thing is that prior to uninstalling the ARD Admin program, clients were hanging on "transferring report" and I was seeing "Encryption key not found for client." in the console.
Now, after reinstalling, clients are hanging on "generating report." There is no error in the console.
Just giving my input of what I've tried, and what I'm seeing. Sorry if I came off as rude to you, Dave.