Its almost like CR is not "seeing" anything but my default printer. I have 15 installed on my system. If I change my default windows printer to a label printer, almost real time CR changes the report size.

On the print screen it shows all my printers, why doesn't page setup recognize them?

When I switched from Windows XP to Windows 7, the Printer button was gone from the Page Setup window.  I used this button, as explained below, so this was a problem at first.

In both Windows XP and Windows 7, the other way to set the printer for the report is in the Print dialog window. 
- Use Ctrl-P or use the File menu - Print option to open the dialog.
- From the list of printers, select the printer that you want to use with the report.
- Click the Apply button, then click the Cancel button, or click the Print button.
- Close the Print dialog window.
- In the Page Setup window, the Paper - Size and Printer - Source options will now correspond to the printer that was selected in the Print dialog window.
- If you save the report, it will save the printer that was selected above.

The way I use this is:

Many of our printers at work are made by Sharp.  In my experience over the years, their printer drivers have bugs that show up when used for Crystal Reports.  These bugs might be fixed in recent driver versions, but I don't want to work with them.

I wanted a relatively bug-free printer driver to use for developing reports.  So I added the HP LaserJet 4, since I figured all the bugs would be worked out for this printer.  This printer is added to my computer's LPT1 port.  I don't actually have this printer (or any printer) directly connected to my printer with the LPT1 or another way.  This printer is a "phantom" printer whose only purpose is for report development, not for actual printing. 

When I actually need to print to paper, I change to one of the networked Sharp printers in the Print dialog window.  If I save the report after doing this, I have to remember to first switch the printer back to the LaserJet, as per above.

Saving the reports with the LaserJet printer also works well for the people who actually run the reports using the Crystal Reports Viewer.  They sucessfully print to many different kinds of printers with my reports.  When the reports were saved with Sharp printers, they had numerous problems.

I have a number of reports whose purpose is not to produce a printed report.  Instead the report is exported to Excel or some other file.  For some of these reports, in order to be able to have many columns in the resulting export, I need to use a paper size that is wider than that supported by the LaserJet 4.  So I also added a phantom HP LaserJet 5Si, which supports wider paper sizes, and use this as the printer for the report.

Because I spend so much of my time doing report development, I have made the LaserJet 4 the default printer on my PC, so that any new reports will use it automatically.  It is a little nuisance to have to change the printer when I print from other applications, but I don't print to paper that much, and it is quick to switch printers with a few key strokes.