Thanks for the reply.
1. Yes, same behaviour attempting to export all reports via each export button (excel, CSV & XML).
2. I can go to the server and use IE (same version 8), and can export using these functions mentioned above. So, I'm thinking that my issue is possibly IIS settings related. Haven't attempted another browser i.e. firefox, chrome etc. because they are not supported within our environment.
3. Check events and did not see anything out of the ordinary.
Any other thoughts or idea's would be very much appreciated.
Thanks again.