This is not a CE question, it would be better to have asked this in
Crystal Reports 2 Data Access.
That being said, Crystal 8 should work with SQL server 2005, I ma currently using Crystal 8.5 on SQL server 2005.
Why are you using CR8 it was a disastrous release, you should have upgraded to CR8.5. Or since you are upgrading to SQL 2005 why not go all the way and go to CR 2008 while you are at it.
Ian