To deploy your application which are using crystal reports, you have to add another project in existing solution named Setup Project to deploy your application to server or client machine.
After adding project in your existing application,
- Right Click on Setup Project in the solution explorer
- Click Properties
- There is a button called "Prerequisites" click it in the list you will find "Crystal Reports Basic for Visual Studio 2008(x86, x64)
- Add it and click Apply --> OK
After doing that your project will now include the CRRedist Files. When you run the installation it will install them and everything works fine.
On Business Objects official site, still I am unable to find .msm file for VS 2008 Crystal Report Basic One. One more thing do not confuse Crystal Reports 2008 runtime files with Visual Studio Runtime files, as this is totally different. The version shipped with Visual Studio 2008 is "Crystal Reports 2008 Basic v.10.5"