That would depend on whether the picklist is inclusive of all items in the table, or just all items in the picklist.
If you want all items in the picklist, create a value called "All" in the defaults, and modify the report->Edit selection formula->record to:
(
if {?Parm} <> "ALL" then
{table.field} = {?Parm}
else
if {?Parm} = "ALL" then
true
)
Note that the parentheticals and double qualification of the ALL in the IF and the ELSE are to assure SQL pass through (Check with Database->Show SQL).
Assuring pass through SQL is based on your version of Crystal, which is generally a good idea to post when requesting technical information.
-k