Adding second instance of SSRS reporting features disabled

I am running SQL Server 2008 R2 server on windows 2008 server.

On the MSSQLServer instance, I already have Reporting services configured in Native mode.

I am trying to add another instance of SSRS in integrated mode. I have followed the steps shown below. The account used has administrator privilages on the server and the MSSQLServer instance.

When I am trying to select the reporting services, the features are disabled.

Any ideas on how I can solve this issue.

Thanks

Nate