Hi,
I would highly recommend following the K2 [blackpearl] Getting Started Guide included with the SP1 installation files. This guide provides step by step guidance as to how to install K2 in a standalone/distributed environment. Several of your issues are related to security rights and these are clearly explained in the Getting Started Guide.
Your issue with the Workspace not working may be related to the fact that the same account that the K2 Service is running under, check Windows Services, must be part of the local IIS_WPG security group. Only if you are deploying processes and Infopath Forms integrated with Sharepoint will you require to have the K2 Service account as a Site Collection Administrator on the Sharepoint Site Collection.
Your issue of not being able to export is the default installation behaviour being that no one has access to export any processes without having K2 Server Rights to be able to export. This can be set in the K2 Workspace Management Console (once you have it running) by a K2 Server Administrator. K2 Workspace is an IIS website running on port 80 (default) if you have not specifically setup the IIS Web Site on a different port. Nevertheless, if correctly setup, the K2 [blackpearl] Workspace icon on the desktop will browse to the correct location.
Also, do not install the K2 Workspace or any other Web Application that you have developed to the same web site that Sharepoint is running on. Sharepoint takes over and therefore breaks any other Web Application running on the same port. It is recommended to always create a new website on a port different to that of Sharepoint and install K2 Workspace and any other applications.
K2 will still be able to execute without SQL Reporting Services, however you will not be able to view any K2 Reports.
In conclusion, please follow the Getting Started Guide and most of your issues should be resolved.
Hope this helps.
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