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Incorrect field rendering in CR XIR2

I'm running Crystal Reports XI R2 with service pack 5 ( integrated to Visual Studio 2005 Professional with sp1. The problem I'm experiencing is in a winform/smartclient .net 2.0 application, the CrystalReportViewer control does not render/display any report correctly. That is, when viewing any report in debug (or compiled) mode using the CrystalReportViewer control, the text fields show a space between two characters in a word. For example, a text field with the string "My report(s) are not working." gets rendered to "My report (s) are not wor king ."

When the report is previewed using the crystal report designer/preview in vs2005, the report looks perfect without the above-mentioned issues. When printed, it too prints correctly - the problems only occur during the viewing from the CrystalReportViewer control.

I have tried running the reports with the "No Printer (optimize for screen display)" box checked & unchecked but that makes absolutely no difference.

This issue started happening once I upgraded to XI R2 and remember that I never had these problems with XI R1.

The version of the CrystalReportViewer control is 11.5.3700.0

Can anyone help?

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