I have the documented issue above, the precise problem is described in document
1794166 - When installing Crystal Reports 2011 and checking the option: “Disable Web Update Service”, it does not disable the update service.
I've tried the fix described here:
https://websmp130.sap-ag.de/sap/support/notes/1218377
but it doesn't work. the update service is still installed and enabled.
Am testing on Windows XP Sp3 and Windows 7 x64 and is the same result.