I had this problem too but I solved this.....this is because the crystal reports shud be registered on the machine where you are running the crystal report. To do that...you need to create a setup of the web application that u r working on and include a file called as regwiz.msm by right clicking on the Application and clicking on Add and then click on Merge Module .
Then in the Properties of that file, you will have to paste the code AAP50GS00000U7000RN
The above code is the one which u get for the Crystal Reports when u click on Help and then click on About Microsoft Visual Studio.Net
The above code or similar one can be found there. And remember u shud remove the '-' and just plain characters as shown above shud be pasted in the License properties of the file.
Then create the setup .....it shud work fine....
******** Alternatively u cud check out the link http://support.businessobjects.com/l...s/c2011205.asp
for the registry edit as a work out for the same.