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Created project and when attempting to run the XML/HTML reports, an error occurs.
Review the status of the project, if any are in error or invalid status this could be causing the problem.
In the newer release (coming out near the end of 3/07) of the Revolve 7.0 updates (found in the Patches & Fixes location in http://supportline.microfocus.com) this is fixed so that the reports will generate and skip over the components that are in error or invalid status.
In the older release of the products, it is necessary to make sure that the project is all "Up to Date" and in loaded status.
Once this was fixed, the project's XML/HTML Reports were produced fine, despite the project's status.