1388376 - How do I resolve the error: COMException from CrystalDecisions.Enterprise.zz_SessionMgrClass.Logon when trying to logon to Business Objects Enterprise XI 3.1 from a .NET Application?

After deploying the "BusinessObjects Enterprise XI 3.1 .NET SDK Runtime" package to a development machine I get the following error when trying to connect to Enterprise via a .NET SDK application:

System.Runtime.InteropServices.COMException (0x80042A01)                                                                            
at CrystalDecisions.Enterprise.zz_SessionMgrClass.Logon(String                                                                     
UserName, String Password, String CMSName, String Authentication)                                                                   
at CrystalDecisions.Enterprise.SessionMgr.Logon(String userName,                                                                   
String password, String cMSName, String authentication)                                                                             
                                                                                                                                                                                                                   
                                                                                                                                   
The username, password, server name, and authentication type are all correct                                                             
and has been verified to work outside of the application.

How do I resolve this?

NET DOTNET .NET logon failed , KBA , BI-DEV-NET , BI Software Development Kits (SDKs) - .NET or Other , How To