I was finally able to get it to do most of what I wanted it to even though mine doesn't seem to work the same way yours does with the drop down box. I also figured out the answer to my #2 question. So thanks so much because you sent me in the right direction of thinking.
What I did:
Quest #1) In Design tab, right click subreport, select change links, I selected all of the Formula fields that I used in the main report for the selection criteria. Crystal created the corresponding Parameter fields.
Quest #2) In Design tab, double click subreport, select Print Preview button from toolbar (little magnifying glass), subreport will run independently & prompt for parms. A preview tab for the subreport is created.
This forum is fantastic!!