Newbi1,
Forgive me if I'm just pointing you in the same direction as Naith, but have you definitely checked that all relevant services are logging on as a domain administrator (bottom half of page 3 in the white paper from Naith's link)? If CR is using the ODBC connection without any problems, sounds like it might be related to the CE services. - Changing the logon has resolved problems for us a couple of times in the past, it might be worth you checking this again.
Gavin