Crystal Report 2008 results "Password did not match error" in SQL Server Log

Hi,

I am trying to develop some crystal reports using Crystal Report 2008 SP4 to connect to SQL server 2008 through RDO (ODBC). My problem is that anytime Crystal Report is trying to establish a connection with SQL Server, first it tries to connect with the wrong password and results the following error message in SQL Server log:

Login failed for user 'peyman'. Reason: Password did not match that for the login provided. [CLIENT: 192.168.2.198]

The login name 'peyman' is the right one as I have quoted the same in setting up ODBC System DSN using "SQL Server Native Client 10". But somehow Crystal Report is taking its chance and trying to connect before prompting me for the password. After this error logged to SQL server side, I can see Crystal Report pops up the prompt to enter DSN password. After supplying password to this prompt, Crystal Report works fine and pulls the data and renders the report without having any more incorrect password error logged to SQL Server.

The attached file shows the step I am taking to regenerate the issue. I need this to be fixed as anytime uses any of these reports and tries to render it with crystal runtime engine the same error message raises in SQL Server side and logged in the log file.

Thanks,