Hello!
A SQL Server report written in Crystal Reports 8.5 is completely compatible with Logicity. (which is built on Crystal Reports 2008)
A report using a Progress database might not upgrade so smoothly though.
Create / Open a very simple report, with only one table and see if the same problem occurs.
Also, try double clicking the report file itself, instead of opening it via the RRD file, and see if the issue still occurs.
I hope this gets you closer to figuring out your issue!
-Devin