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

Question

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)

Answer 1

1. The OS is 32bit
2. Yes. The C drive is the primary drive
3. For the sake of simplicity and to troubleshoot the sample code has no datasource just 'Hello' in the report header. The Actual work order report that I need has ADO as datasource and it builds a PDF report without any problems when I run the page from VS2008 (development server) so I think the dll's are where thay are supposed to be. The c:\windows\assembly folder has about 25 CrystalDecisions files (10.5.37).
Do I still need to create a deployment package even though I have everything else working?
Below is the code I am using to create the report
    Sub CreateReport()
        Dim myReport As New ReportDocument
        'Try
        myReport.Load(Server.MapPath("CrystalReport.rpt"))
        'Catch ex As Exception
        'MsgBox(ex.InnerException.ToString)
        'End Try
        Dim g As Guid = Guid.NewGuid
        Dim woPath As String = "../FileTemp/" & g.ToString & ".pdf"
        'Try
        Dim CrExportOptions As ExportOptions
        Dim CrDiskFileDestinationOptions As New  _
        DiskFileDestinationOptions()
        Dim CrFormatTypeOptions As New PdfRtfWordFormatOptions()
        CrDiskFileDestinationOptions.DiskFileName = _
                                    Server.MapPath(woPath)
        CrExportOptions = myReport.ExportOptions
        With CrExportOptions
            .ExportDestinationType = ExportDestinationType.DiskFile
            .ExportFormatType = ExportFormatType.PortableDocFormat
            .DestinationOptions = CrDiskFileDestinationOptions
            .FormatOptions = CrFormatTypeOptions
        End With
        myReport.Export()
        'Catch ex As Exception
        'MsgBox(ex.ToString)
        'End Try
        Response.Redirect(woPath)
    End Sub