Configure SQL Server Database for High Availability & Warehousing
Quick points:

-Don't setup a separate 'transaction log backup' job outside of the 'log shipping' architecture.  Doing so will break log shipping.  Let log shipping handle all of your transaction log backups.

-You can use log shipping in 'STANDBY' mode but note that the instance will not be accessible when the server is doing a log restore.  You can set the frequency in which to do log restores (for example, take a transaction log file backup every 5 minutes, restore to the reporting server every 4 hours) which should minimize connectivity issues.

-Paul Randall will probably kill me for this, but I have a 'mirrored' instance with a snapshot taken on it every 30 minutes.  All queries are ran on the snapshot.  I have not had a single complaint in 4 months of keeping this up.  This was a 'intermediary' step before we could setup a replicated copy but it's working very well.  Again, Paul Randall does not like this solution but it works for me thus far in this limited scenario (whilst being aware that often a limited scenario will turn out to be permanent solution).

-Have you considered a daily 'snapshot replication' job which refreshes the reporting instance?  How far behind can your reporting server be?