Its physical, problem has vanished again, still didn't figure out the root cause.  Thanks for the ideas.

We traced the db wide open for over an hour while the problem persisted and found nothing unusual.

No it is completely unrelated to any sql transactions, load is unrelated.  It spikes for about 90 seconds then goes back down for about the same time rinse and repeat....

Some as others I went through this whole example, got it working in visual studio, only to deploy it to the reportserver where it is needed and it does not...