I took the easy way out (maybe not the shortest ... but it was the easy way out). I completely removed Crystal Reports XI and CR for VS from my computer. I then checked for left over files and folders - removing them as I ran across them. After that, I waded through the tons of left over CR, SAP, and BusinessDecisions Registry entries ... removing all of those.
Once that was completed, then re-installed CR for VS, and was successful.
I can now add and use the Crystal Reports viewer, with out the previously stated warnings.
At the suggestion of out IT person, I have since installed CRXI in a virtual machine and intend on keeping it separate form my development environment.
The left over registry entries that I spent all morning cleaning out, was (probably) the result of installing and uninstalling multiple iterations and combinations of CRXI and various forms of ReportViewer installs and runtime engine installs.
Thank you so much for your assistance and guidance.
Phil Delay