need to connect SQL Server 2008 and CR 2008 via OLE DB SQL Server Provider

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I am relatively new to Crystal but have done some minor design/layout work in the past. I just purchased CR 2008 and dowloaded a Eval Copy of SQL Server 2008 to build test reports that will then be uploaded to a hosted web app we use for use with live data.

I am having some trouble, however, getting SQL server and CR 08 to talk the way I need them to. We have to use the OLE DB for SQL Server Provider connection for the reports to work in our hosted live environment but I cannot get this to work on SQL 2008. The server never appears in the Server dropdown and if I manually type it get the following error:

 failed to open connection.
Detail ADO Error Code: 0x80004005
Source: Microsoft OLE DB Provider for SQL Server
Description: [DBNETLIB][ConnectionOpen (Connect()).]SQL Server does not exist or access is denied.
SQL State: 08001
Native Error: 17 [Database Vendor Code: 17 ]

I am setting up the connection through the Database Expert choosing the OLE DB (ADO) folder and then selecting 'Microsoft OLE DB Provider for SQL Server' then entering my server name, user id, password, and Database name.

I have uninstalled and reinstalled everything twice. I have installed the Microsoft SQL Server 2008 Analysis Service 10.0 OLEDB Provider pack.

My provider/host does use SQL Server 2005 but since I can't get a free Evaluation version of it I have to use 2008 for my local copy. I have searched the web over (including here) and cannot find an answer to my issue.

I cannot use SQL Server Express version because our copy of the DB is too big. I cannot use the Native 10 provider as the reports will not work once I have uploaded them to the live data.

any help anyone can provide for this would be GREATLY appreciated. Thank you and sorry if this is a dupe post. I have searched everywhere and cannot find the answer.