From the Pervasive Documentation:

3012: Local engine is not accessible to the MicroKernel router
Access to the local engine is not possible because it is not loaded or could not be launched. You can receive this status code if you try to access a local file on a client and you do not have a MicroKernel workstation engine installed or if you try to access a local file on a server and the MicroKernel server engine is not running.
If you have only a server engine installed and your Pervasive Event Log (PVSW.LOG) contains Status Code 3012 warning entries, perform the following steps:
To Turn Off Local Engine support (for clients and workstations only):
1. Click Start | Programs | Pervasive | Pervasive Control Center.
2. Expand Pervasive.SQL 2000i Engines and expand the desired database.
3. Expand Configuration, then expand Client, and click on Access.
4. In the right hand frame, double-click on Local, change the Current value to Off, and click OK.
5. In the right-hand frame, double-click on Requester, change the Current value to Off, and click OK.
6. In the right-hand frame, double-click Target Engine, change Current to Server only, and click OK.
7. In the left-hand frame, expand Client-16 bit and click on Access.
8. In the right-hand frame, double-click Use Local MicroKernel Engine, change Current value to Off, and click OK.
9. Make sure the Use Remote MicroKernel Engine value is set to on and that the remote engine is set to accept remote requests.
10. Exit the configuration utility and restart the engines for the new settings to take effect.

Crystal is trying to access the peer server without the MK engine being available.