1404062 - Error: "Invalid Argument" when refreshing a report based on Salesforce.com in Crystal Reports 2008 after applying Service Pack 2

Error: Invalid Argument provided.
When refreshing a report based on Salesforce.com, it fails with the above error.
It was possible to successfully refresh the same report before applying a product update to Crystal Reports.
After applying Service Pack 2 to Crystal Reports 2008, all reports connecting to Salesforce.com fails to refresh with the following error:

" Invalid Argument provided.
  Details: java Server startup failure. Verify the PATH (JDK), (CLASSPATH), and IORFileLocation properties in the CRConfig.xml file.
  In addition, verify that you are using JDK 1.5."

Crystal Reports 2008 V1

CR, SForce , KBA , BI-RA-CR , Crystal Reports designer or Business View Manager , Problem

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