I have been testing and modifying the software (Windows Form based) I'm developing with Visual Studio 2010 and it utilizes SAP Crystal Report as the reporting tool for my project. I was able to successfully tested it to include the crystal report engine for the Setup and Deployment project. To successfully deploy your project including the crystal report engine, you have to include all the merge module from SAP Crystal report version 13 on your Setup and Deployment project. The only disadvantage with this is that your setup executable or windows installer files will become bigger because of the merge modules you have to include in your project.
The following merge modules can be downloaded on this link - http://www.sdn.sap.com/irj/scn/weblogs?blog=/pub/wlg/22083
Please see below the following merge module files to include in your deployment project:
