I'm not sure where this error originates, but having the Vista client completely freeze is a bad user experience.
I stumbled into this in SM Invoice [Preview] If the 'Custom Report' specified is currently open in the Crystal Reports Editor, and I hit the [Preview] button to pull and view the report.
I think users would appreciate an error message along the lines of "Error accessing report file. Perhaps it open in an editor?" instead of the entire Viewpoint Client freezing.
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Not sure what behavior you're seeing. I've always gotten an error message when I have a report open in Crystal and then try to run it in Vista. Granted, the error is fairly worthless but cryptic enough that my users can't make any sense of it and contact me anyway. I've attached a screenshot of the error I get.