Compatibility issue with Crystal Reports 2008 SP2 and XP SP2

We have a small executable that we use to run our .rpt files. We install this executable on the user's machine, using an msi file that we create using Visual Studio 2005 and the CRRuntime_12_2.msm merge module. We just noticed that our install fails if the user's Operating System (OS) is XP SP2. If the OS is XP SP3, there are no problems.

Here is the error message we receive when the install fails:

MSI (s) (30:50) [11:20:06:294]: Product: CRPrint -- Error 1904. Module C:\Program Files\Business Objects\BusinessObjects Enterprise 12.0\win32_x86\CEReportSource.dll failed to register. HRESULT -2147010895. Contact your support personnel.

Is this a known incompatibility?

Thanks.