Business Objects/Crystal - Looping Logon

Web server now requesting users who are not members of "local administrators" to log in to host server, NOT database, when reports run. Reports all structured to use disconnected recordsets generated from queries of SQLServer database. If valid local admin UID & pwd supplied, reports run fine. This issue occurred out of the blue from one day to the next - host server located in company's head office and controlled by network group who won't admit to performing any changes or installs (). Any ideas? Already tried Business Objects knowledge base, and read through all versions of the white paper on "looping logons". Thank you!