Like Anthony said, try it with some of the other options, like a different report, etc.
Another thing to try is run (not schedule) the same report and see if you have the same issue (i.e. it is the report setup and not the scheduling of the report that is the issue). Sometimes the scheduler is just highlighting an issue that exists with the report/report definition itself.
There are a couple of bugs (here's one https://bst.cloudapps.cisco.com/bugsearch/bug/CSCua48754) where the "workaround" from Cisco is to do it this way (i.e. not allow filter usage in the Scheduler). Not ideal, but might at least let the poster be able to get the reports running while the defect and/or fix comes out.
The poster could also be running into a defect like this, where scheduled reports get broken after an upgrade.