ReportViewer Control large dataset timeout

Reporting Services 2008 R2

I have a rather large report that returns around 40,000 records. (I've tried telling the business that this is not a useable report and no one is listening.)

When I execute the report through a webservice and stream it to an excel file the response time is fine.  Trying to load the report using the report viewer control it just hangs.

When I run the report through SSRS own Report Manager, I get the following error

• An error occurred within the report server database. This may be due to a connection failure, timeout or low disk condition within the database. (rsReportServerDatabaseError)
  • Timeout expired. The timeout period elapsed prior to completion of the operation or the server is not responding.

This is on my own local dev machine at the minute and I've only just gotten the correct dataset it will be run against.

The stored proc runs in a couple of seconds.

Does anybody have any suggestions in what I can do?

Any help would be appreciated.

-----  Code

<rsweb:ReportViewer ID="WebReportViewer" runat="server" Width="1000px" ProcessingMode="Remote" ShowExportControls="False" ShowParameterPrompts ="false" ShowPrintButton="false" />       

this.WebReportViewer.Visible = true;
this.WebReportViewer.ServerReport.ReportServerUrl = new Uri(this.ReportServerUrl);
this.WebReportViewer.ServerReport.ReportPath = this.WebReportPath;

            Microsoft.Reporting.WebForms.ReportParameter paramContractNumber= new Microsoft.Reporting.WebForms.ReportParameter("ContractNumber",this.ContractNumber);

this.WebReportViewer.ServerReport.SetParameters(new Microsoft.Reporting.WebForms.ReportParameter[]
            {
              paramContractNumber,
            });