Thanks for your help,
I'm not sure how to make sure IIS has access to the folder because I'm running this off of my localhost/development machine.
I installed Fiddler (looks like a useful tool, thanks for that), and did not see any denied errors for the dynamic image that displays in the report, but I did see that this is what is displayed in grey for it:
GET /apptrak%20repository/CrystalImageHandler.aspx?dynamicimage=cr_tmp_image_7c22387d-51d5-477e-8bfe-472f4b284ba6.png HTTP/1.1
When I hit the refresh button the same image does display, which is the default image that I chose when I created the image placeholder in the report.
Thanks again for any help you can give.
Cory