You added it wrong.  Add it with SQL authentication in Crystal.

Sorry, how to I do that?

I opened the Databse Expert, clicked create new connection, clicked ODBC, selected the data source, clicked next put in the user and password and clicked finish.

That sounds right, but now you need to check all the tables, because even if your table was right, the other ones might be NT authentication.  Try going to Database/Set Datasource Location, and reset everything to a DSN that uses SQL authentication.

I had tried that before hand....

Note that when you set up the ODBC DSN it matters if you leave the option selected on NT Authentication vs SQL Authentication.

All the ODBC connections are set to SQL Authentication with a super users login and password. 

Some new information that may help.

- When I am logged in to windows as a very base level user and sage300 as a base user, the report hits the database logon screen.

- But, when I am logged in to windows as a the same base users and then sage300 as the admin, the report works.

Anyone think there is some setting in Sage that needs to be toggled?

I am not yet sure. But a possible answer may be:

(1) You must adjust the report options and remove "Save data with report"  

(2) (MUST BE LOGGED IN AS A USER THAT USES THE ODBC CONNECTION AND IS NOT AN ADMIN AND DOES NOT HAVE DIRECT PERMISSIONS ON THE MSSQL DB) Set data source location to the DB for the company both at they Yellow Cylinder Icon connection level and for Blue Table Icon for each table in the report and sub report.  (So, lots, of updating).