I think the issue is related with configuration and you just need to configure the Crystal report Server information in Mid-Tier properly.
MidTier Configuration.jpg 28.9 K
Unless you have Crystal Enterprise or Analytics Premium, you will not be able to run the Crystal reports on the web. While we included the report files for those customers who have Crystal, we have moved away from Crystal ourselves and recommend either the web reports or Analytics (which is based on Bus Obj)
Most customers go to the Reports form and mark the Crystal reports as inactive or hidden (I forget the parameter) so that no one selects them accidentally.
You must need one of the below componants, if you want to run Crystal reports on web :
1 Crystal Report Server
2.Buisness Object Enterprise XI
Once you have one of these componants, go to you ar system mid tier configuration page and follow the steps that are included in above attachement.