This is actually a BusinessObjects issue, not a Crystal Reports issue. For future reference, you'll usually get a better response for these types of questions over on BOB -
http://www.forumtopics.com/busobj/index.php
What version of BO are you connecting to? Are you in the Information Design Tool or Universe Designer?
This error means that the Universe Designer cannot connect to the BusinessObjects CMS, so it won't work correctly. This can happen for a couple of reasons:
1. The CMS is running but not on port 6400. In this case you need to include ":<port number>" at the end of the CMS name.
2. The machine where you're in the IDT or Universe Designer can't "see" the server where BusinessObjects is installed.
3. The CMS is truly not running.
-Dell
Edited by hilfy - 14 Feb 2013 at 12:03pm