Getting Failed to load database information when calling Crystal from VS12 accessing xml files.

Have Crystal 2013SP5 (14.1.5.1501) and VS2012

Just trying to run Crystal over simple xml files.

Within SAP Crystal Reports the report is generated without any issues except:

- when create data source using XML and Web Services got message "A stored  procedure has been used in this report. Please make sure that no SQL ....). This does not make sense since defining under xml don't know where Crystal thinks the stored procedure is coming from?

When I try and call the program using C# VS 2012 get message Failed to load database information.

Code is very very simple

                    //code to generate xml here!

                    ReportDocument crystalReport = new ReportDocument();

                        crystalReport.Load(currentDirectory + @"\Reports\FormulaMixAP.rpt");

                    //populate a couple of report parameter fileds

                    crystalReport.SetParameterValue("uomQty", Main.uomQty);

                    crystalReport.SetParameterValue("uomBaseUnit", Main.uomBaseUnit);

                    crystalReport.SetParameterValue("uomType", Main.uomType);

                    //Call the report

                    crystalReportViewer1.ReportSource = crystalReport;

                    crystalReportViewer1.Zoom(2);

I have been searching internet and SAP forum site for a couple of days for similar issue and solutions and it does not seem that many just try and access xml files directly without using ADO.NET (xml) connection.

I have read the Crystal help and still none the wiser.

Is the ONLY way to read xml files via ADO.NET (XML) and not XML and Web Services?

I am using a local install of SQL 2014.

Thanks.