Here is some T-SQL to script the folders creation.

It takes care of the hierarchy, but please note that the folders named 'Data Collector' and 'Maintenance Plans' are excluded.

WITH

...

Here is a stored procedure which I have successfully tested on SQL Server 2012 : this might help to solve your problem.

I had to write specific code for SQL Server...

Hi,

Just to let you know that I had exactly the same issue on SSRS 2008 R2 and Windows 2003 domain, and that the tip provided by jjulson was the solution...