I think you may have a bit of a bigger problem - Crystal XI does not integrate into VS 2008. VS 2008 comes with Crystal 10 integrated into it and Crystal 2008 with work with it, but not Crystal XI. Crystal 10 will read Crystal XI files, but you will not have access to any features that are in XI that weren't in 10.
I suspect that there are some differences in some of the standard .NET 2.0 files between Windows Server 2008 and earlier versions of Windows that are causing your problem. If you upgrade your project to .NET 3.0 or 3.5 with the upgrade to Visual Studio, you may not have this same problem - but I don't have access to Windows 2008 to be able to tell you for sure.
-Dell