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Advanced Reports (AR) does not have to be installed previous to upgrading SMS version 4.2.
From page 34 of the System Manager Software Setup Guide Version 4.2, step 23 states:
"If no previous Advanced Reports software is installed on this computer, a message displays telling that it will be installed. This will install Crystal Enterprise and then the SMS Advanced Reports software."
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We are excited that you have joined the group. You will receive your welcome email soon describing the program and what to expect in the upcoming weeks. Enjoy!