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Mysterious circumstance - looking for clues - Logon failed error...

I am looking for some clues that anyone might be able to offer to resolve a very mysterious circumstance we have encountered. First the facts...

We are running Crystal 2008 and our VB.NET Visual Studio 2005 application - the application being merely a 'reporting tool' for our Crystal reports.

Things have been running great in a number of client sites - no problems at all - but in one client site we are getting the following error:

Logon failed: Error in file (Crystal Report name) Unable to connect:incorrect log on parameters.

Now here is what makes this so mysterious - we get this error on one desktop machine, and one laptop machine - BUT on BOTH machines our users are also running Virtual PC's and on both - Things work fine!

That is, on both machines in the Virtual PC the software runs perfectly - but on the machines themselves, we get this error shown above.

I have already validated that the SQL Native Client is installed on both machines, and MDAC is up to date - so I dont think this is the source of our problem.

As well, this app is running perfectly in a bunch of other sites, and also perfectly here at our office - that is, I know my report parameters are good, and the Logons (of course) must be working right because identical logons are used in both the machines, and the virtual machines.

Does anyone have any clues or suggestions at what I might start looking at in this situation? There has to be something I am missing, but I cannot imagine what it is.

Any suggestions, clues or help at all is most appreciated!

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