There have been many posts on this but I can't actually remember what some of the potential solutions were. Try using the search button and search for something like "Crystal Login Failed" (which you should do before posting anyway).
I ran into the same problem a while back. It's with the way Crystal authenticates with the SQL db. I had to use SQL authentication hardcoded in order for it to work. I used Windows auth on all other forms, but Crystal.
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