One possible reason for using PrintTool and not the Custom Reports launch from within Adagio is that you may want to allow someone to print a report but not give them any access to the accounting programs.
Also, due to Crystal Report engine (CRPE32.DLL) scenarios, some reports created in Crystal Reports 8.5 may contain features that older report engines can't recognize. The result would be seeing a 'screen flash' when previewing the report. You can tweak PrintTool to be able to print this report, but this currently can't be tweaked for the Custom Reports menu.
I believe PrintTool pre-dates Windows XP, so we would have to take a look into the situation. You shouldn't be getting that error.
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Regards,
Softrak Tech Support