AFAIK, at this point you can't. Crystal 2008 changes the Excel export option to include 2003, but it uses the "lowest common denominator" export which means that it follows the row restrictions of the earlier versions.
Also, I believe Office XP is 2002 and the 65,532 row limit is in versions of Office earlier than 2003 - I used to have Office XP installed but had to upgrade it to 2003 in order to be able to use XML data sets with Xcelsius.
One possible way to get around this would be to export to a .csv file and then open that in Excel. However, you have to be careful about how you format your data in order for it to export cleanly.
-Dell