The specified procedure could not found(Exception from HRESULT: 0x8007007F)

Background:

Visual Studio 2008, Crystal Reports 2008, Crystal 12 Merge Modules, dot net 2.0 with SP1

I created a small Crystal Report Viewer using VS 2008 and Crystal 2008. If i run report with parameter prompt I am receiving the following error "The specified procedure could not be found. (Exception from HRESULT: 0x8007007F)". If I run report without pparameter prompt the reports display fine. This error only occurs on some computer only. I did some troubleshooting and found that "C:\Program Files\Business Objects\Common\4.0\managed" folder is empty, should this folder contains files like 'CrystalDecisions.CrystalReports.Engine"?

Please help!