Why does Windows/Integrated Authentication in IIS not pass user credentials to SSRS and SQL?

Issue:
In ASP.NET 4.0, I use my SSRS 2005 server’s ReportService2005.asmx web service to get a list of reports. Also in .NET, I use Entity Framework to communicate with my MS-SQL 2005 database. When I use Visual Studio Development Server as my web server, calls to SSRS and SQL work fine. But when I switch to IIS 5.1, both SSRS and Entity code produce errors. I use only Windows/Integrated Authentication in IIS.

Getting “The entity type is not part of the model for the current context.”

I am having this issue updating my database 1 column at a time in asp.net using web api. I am trying to query a PUT to just update one value in the row instead of updating that one and setting the rest to null. I made a separate model outside of the controller to take in the update so I could do one at a time. When I hit this line db.Entry(user).State = EntityState.Modified; in the controller that is where it is erroring out. Any advice how I can fix this?