In CRM 3.0 Crystal Reports moved on to SQL Reporting Services (SRS) and after the CRM 1.2 migration, you will not be to access the reports that were created /developed / customized in version 1.2.
To confirm the same, I quickly wrote to some of the Microsoft Dynamics CRM MVP’s and they quickly responded (Kudos).
Anne Stanton: It is correct that Microsoft dropped Crystal and that you can’t “migrate” the reports to SRS. Needless to say one of the huge disadvantages of customizations (the environment always changes). On the other hand there is built into 3.0 the ability to get access to your reports for manual conversion.
Matthew Wittemann: The bad news is that Crystal Reports are no longer supported in version 3.0. CRM 1.2 included a built-in license for Crystal Enterprise, which allowed the CRM system to serve up Crystal reports to licensed CRM users. Since CRM 3.0 now uses SQL Reporting Services, Microsoft did not include any license for Crystal. In order to continue providing access to Crystal reports to the end users, you would need to purchase a license of Crystal Enterprise Server. The other option is to re-create your custom reports in SQL-RS. There are also services on the internet that will convert your Crystal report to a SQL report for a small charge. (You can google “Convert Crystal Reports To SQL”). If you have a copy of the Crystal Report designer, you can continue creating reports against CRM databases and saving them as PDFs for manual distribution, though this is obviously not ideal.
Larry Lentz: To the best of my knowledge they do not migrate to CRM 3.0.
Andreas Donaubauer: You will have no possibility with an update from Crystal Reports (CRM 1.2) to SQL Reportingservices (CRM 3.0). Only one way – make again under SQL Reportingservice.
Jürgen Beck: There is not really an upgrade way from old CRM 1.2 reports (Crystal reports) to the new CRM 3.0 SSRS-reports. The easiest way is to forget the old reports and created new one with SRS.
Mike Snyder: Unfortunately there isn’t a great Crystal Report migration story regarding Microsoft CRM 1.2 customers upgrading to Microsoft CRM 3.0. Customers will need to recreate their reports for SQL Reporting Services, or use run their old Crystal Reports using a Crystal Reporting Server. Customers can, of course, access these Crystal Reports through the Microsoft CRM 3.0 User Interface by uploading the report as a “link to Web page” instead of a file. Simply specify the URL of the Crystal Reporting server and customers can run the reports from within Microsoft CRM.
That was good enough and I gave up the option to convert though I found some hints who do convert Crystal Reports to SQL. http://www.rpttosql.com/index.html & http://www.ktlsolutions.com/t-crystalconverter.aspx