"I get a native error = 7008 when running a crystal report on a Windows XP client."
Change the ads.ini file to reflect the servers share name vs a mapped drive. Please see the examples below:
[Settings]
ADS_SERVER_TYPE=3
[Databases]
DATA=Q:\dapps\memb\CAI;C
CAI=Q:\dapps\memb\CAI;C
[Settings]
ADS_SERVER_TYPE=3
[Databases]
DATA=\\caiserver\company\dapps\memb\CAI;C
CAI=\\caiserver\company\dapps\memb\CAI;C