Salesforce.com as Available Data Source

Salesforce is showing as an available data source when creating a new report in Crystal Reports, but when I enter the salesforce login information I recieve the error message

"Invalid Argument Provided

Details: Java Server startup failure. Please verify the PATH (JDK), CLASSPATH and IORFileLocation properties in the CRConfig.xml file. In addition, please verify you are using JDK1.4"

Could anyone please provide some help with this? We have used salesforce for a long time but I am new to Crystal Reports.