once you open the report in 11, albiet successfully, once you save it, it will convert to the 11 format, and you will no longer be able to open in earlier version of crystal.
 
it's asking you about that, because the newer version maintains the connection information differently, with newer drivers and all. you are doing the correct thing, in that you say NO to remove from report.
 
next step is to, Set the Data location, from said menu, for all your tables, as well as for your Subreports.
 
then save the report, ver 11. and it should not bother you again.
 
make a copy for your ver 8 if you want to retain.
 
hth