I'd consider Madawc's suggestions. This sounds like running out of memory, pure and simple. Assuming that is the problem splitting the data set in some way makes sense.
Possibilities I'd consider as secondary;
-DOS environment not set up right, since this is XP running with a DOS shell.
-Database returning memo fields or special characters that formerly the report didn't have to handle. New data with foreign characters could cause an issue like this.
-Security changes
Or a combination, of course.
For the second one you might check the menu 'File'/'Report Options' and see whether you have 'Translate DOS Strings' and 'Translate DOS Memos' checked.
Whatever Icon you have running this, (assuming this is a shortcut) you could right click on it, go to properties and look for the compatibility tab. Then change the compatibility to something other than what it is set to.
Also; Madawc's comment about 7 being old- critical point. Most of us have never even worked with 7, including me. So our hands are kind of tied on helping out. You might consider suggesting to management that although a version change might not fix this specific problem, that future problems will be better supported, and newer features aren't just fancier bells and whistles. They're willing to pay for XP, and SQL Server upgrades, crystal should be part of their software cycle maintenance. Next version of windows you might even be unable to run this.
Hey, though, good luck. Let us know if you get any more information; such as a more explicit error message on a future run.