I'm experiencing this exact problem. I haven't figured out the answer
yet, but using FILEMON, I can see that the the w3wp process is writing
the image to c:\WINDOWS\system32\inetsrv\dynamic_images, not the
c:\program files\microsoft... directory. This is the problem, I just
don't know how to force crystal to write it and pick it up in the same
place.

-Brendan

PS. If Crystal for .NET was a person, I'd kick it in the knee. What a
pain in the ass.