Error in File UNKNOWN.RPT: The request could not be submitted for backgroun

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I receive: Error in File UNKNOWN.RPT: The request could not be submitted for background processing.

The error is on a windows Server 2008 SP2 production server. The report generates fine if I run it from within Visual studio 2008 on the server but not through IIS. The Crystal Reports is the version that came with vs2008 (10.5).

Initially I was getting unauthorized access errors so I granted full access to everyone for the bin and managed crystal report folders under program files. This fixed the unauthorized access problem but now I get the background processing error. I also tried to inpersonate an admin account with the same result. I tried to copy the crystal reports dll's to the bin folder for the project but that did not help either. I am running out of ideas. I did notice that a 16kb rpt file is generated in the Windows/temp folder every time I try to run the report.

the crashing page is here Link:[http://futuretechgroup.com/cgi-bin/crystaltest.aspx]

Here is the event log:

Event code: 3005

Event message: An unhandled exception has occurred.

Event time: 5/24/2010 12:24:56 PM

Event time (UTC): 5/24/2010 7:24:56 PM

Event ID: 87ee3d9297fb409ea7b440b059a0f07d

Event sequence: 4

Event occurrence: 1

Event detail code: 0

Application information:

Application domain: /LM/W3SVC/5172/ROOT-1-129192026961318172

Trust level: Full

Application Virtual Path: /

Application Path: C:\inetpub\vhosts\futuretechgroup.com\httpdocs\

Machine name: FTG2009

Process information:

Process ID: 3644

Process name: w3wp.exe

Account name: FTG2009\IWPD_1(yanoshftg)

Exception information:

Exception type: CrystalReportsException

Exception message: Load report failed.

Request information:

Request URL: http://futuretechgroup.com/cgi-bin/crystaltest.aspx

Request path: /cgi-bin/crystaltest.aspx

User host address: 70.173.237.72

User:

Is authenticated: False

Authentication Type:

Thread account name: FTG2009\IWPD_1(yanoshftg)

Thread information:

Thread ID: 5

Thread account name: FTG2009\IWPD_1(yanoshftg)

Is impersonating: False

Stack trace: at CrystalDecisions.ReportAppServer.ReportClientDocumentWrapper.EnsureDocumentIsOpened()

at CrystalDecisions.CrystalReports.Engine.ReportDocument.Load(String filename, OpenReportMethod openMethod, Int16 parentJob)

at CrystalDecisions.CrystalReports.Engine.ReportDocument.Load(String filename)

at cgi_bin_CrystalTest.CreateReport() in C:\inetpub\vhosts\futuretechgroup.com\httpdocs\cgi-bin\CrystalTest.aspx.vb:line 15

at cgi_bin_CrystalTest.Page_Load(Object sender, EventArgs e) in C:\inetpub\vhosts\futuretechgroup.com\httpdocs\cgi-bin\CrystalTest.aspx.vb:line 9

at System.Web.UI.Control.OnLoad(EventArgs e)

at System.Web.UI.Control.LoadRecursive()

at System.Web.UI.Page.ProcessRequestMain(Boolean includeStagesBeforeAsyncPoint, Boolean includeStagesAfterAsyncPoint)