Reports give Database Error

Anytime I try to run a report no matter the application I get an error.

An exception has occurred:

java.lang.RuntimeException
Unable to connect to DB.

Error at http://10.0.1.1/jsonrpc/jsonrpc.js?s=1359651505:461:37

How to I setup the database connection settings? Do i have to setup a DB?

Brand new install, everything else works fine.