CDZHome Error when trying to connect universe from Crystal Reports XI R2

I am getting the below error message when I am trying to connect a universe from Cyrstal Reports.

CDZHome not found on server, IRAPPS437.WebIntelligenceProcessingServer

I am using below versions:

Universe - Business Objects XI 3.0 Enterprise Edition

Crystal Reports - Cyrstal Reports XI R2 SP4.

If you notice the error is related to Web Intelligence when I am not doing anything related to Web Intelligence. So I suspect that Cyrstal Reports XI R2 is not compatible with BO XI 3.1 or Vice Verse.

Any input on this is appreciated.

Cheers,

Kanna