Turn off block highlighting in Visual Studio 2010
This too was driving me crazy. I put up with it for a few months and finally decided to fix it. The top post here says it all.
Parameter validation failed. It is not possible to provide valid values for all parameters.
I have a reporting services report file with cascading dropdowns. The report worked fine when testing on my local machine. I updated the report to accept an internal parameter so that in the first dropdown, a subset of values would be displayed based on an authorization scheme. I set a default value for the parameter and previewed the report. It worked as expected.
This report is integrated into an ASP.NET website using the ReportViewer control. I removed the default value from the report and deployed it to the report server. I modified the ASP.NET code behind to grab and pass the parameter to the remote report. Navigating to the web page:
Error: Parameter validation failed. It is not possible to provide valid values for all parameters. (rsParameterError)
After hours of searching and trying various recommendations, I found the solution.
Navigate to the remote report server management page (http://<reportserver>/Reports/Pages/Folder.aspx). Drill down and hover the cursor over your report, open the menu and select Manage.

On the page that opens, select Parameters and make sure the Hide box is checked for the parameter of concern.
Apply the update, and test.





