I have the exact same problem, Test from AMS all work fine its just the reporting side. did try DNS name instead of the IP, but still no luck.
error logs state the same
COM error in repGenerate(): Crystal Reports ActiveX Designer-Failed to open a rowset. Details: ADO Error Code: 0x80004005 Source: Microsoft OLE DB Provider for SQL Server Description: [DBNETLIB][ConnectionOpen (Connect()).]SQL Server does not exist or access denied. SQL State: 08001 Native Error: 17