Solution developers will often have different versions of Dynamics NAV installed on a single machine for their development environment. The way this is often implemented is to fully install the latest version and simply copy the Classic Client binary files for earlier versions into separate folders so you have something like this:
NAV 2009 R2 fully installed with an R2 SQL Server database
C:NAVCLIENTSNAV 40 SP3ClassicClient (containing NAV binary files. A NAV 4.0 SP3 database is also accessible on the machine)
C:NAVCLIENTSNAV 50 SP1ClassicClient (similar setup to above)
C:NAVCLIENTSNAV 2009ClassicClient
C:NAVCLIENTSNAV 2009 SP1ClassicClient
This approach has been working for solution developers for some time now. However, after installing Dynamics NAV 2009 R2, if you then try to view the Layout for an NAV 2009 SP1 Report you will get the following error:
The Dynamics World Ltd 