First, post what the TYPE of database is...
I can see that you're using xBase, as I recall it would be some Fox version, and whether Crystal might read it might be based on the connectivity used, which you also feel unimportant to share when asking about databases and connectivity.
Try changing to a different ODBC connection. If it's a recent version of Fox, you better make sure that you have the latest ODBC driver as VFP probably came out AFTER Crystal 8.5
I think that iot can read memo fields though, and they should show up by pointing to the DBF. btw, the DBF is NOT an index file, it's the database fiel itself, and the FPT is the file containing the memo field(s).
-k