Does anyone know if this is fixed by installing a later version of Crystal? I have just upgraded from Crystal 2008 SP0 to SP1 and have also started to get this error when trying to export reports to Excel via CRD. (I'm having trouble getting SP2 to install on XP so I plan to move straight to SP3).
Update to this - I added the suggested path to the global environment variable (not my personal one) and all is now working again :-)
Note 1. I didn't copy or move any DLL's - probably these are OK in SP3.
Note 2. If you want to upgrade to Crystal Reports 2008 SP3 it comes as a full install, so you have to un-install your current Crystal Reports first. Once installed I used the CRD / Change Crystal Version application, so didn't need to re-install CRD.