Have you tried assigning permissions to the NETWORK SERVICE account entry on C:\Windows\system32\inetsrv\dynamic_images ?
is this line present in your web.config ?
<system.web> <httpHandlers> <add verb="GET" path="CrystalImageHandler.aspx" type="CrystalDecisions.Web.CrystalImageHandler, CrystalDecisions.Web, Version=13.0.2000.0, Culture=neutral, PublicKeyToken=692fbea5521e1304"/> </httpHandlers> </system.web>
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