Crystal Report using a Web Service as a data source?

I am trying to figure out how to use a Web Service as a data source in Crystal Reports. When I use the report wizard, I do not see an option to select Web Service as a new connection. We are currently using Crystal Reports 2008 v12.1.0.892. Could it be that my version does not support this? Is there an update that contains this feature? Please help.

Thanks for your response. Unfortunately I do not see a radio button for Web Services. I've read that it should be there too. Could it be a missing plug-in or patch?
Here are screen shots of what I see when trying to connect to an XML. Any thoughts?
[http://s26.photobucket.com/albums/c120/hpolit/?action=view&current=wizard1.jpg]
[http://s26.photobucket.com/albums/c120/hpolit/?action=view&current=wizard2.jpg]

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