There are four merge modules that need to be included in a setup project to deploy reports.
Ø Managed.msm
Ø Database_Access.msm
Ø Database_Access_enu.msm
Ø Regwiz.msm
In addition to these there are two other merge modules that need to be added depending upon the reports. If any of your reports are based on ADO.NET dataset objects (which is like 9 times out of 10!!!). The VC_CRT.msm and VC_STL.msm merge modules also need to be added.
All the merge modules are installed to the following folder by default:
C:\Program Files\Common Files\Merge Modules\
By right clicking the Set up projects and choosing Add and then Merge Module...
We get to the following screen.

Below you will find what each of the merge module does and its function in deployment of reports.
Managed.msm:
The managed.msm is used to install all the Crystal Reports for VS.NET managed components, such as CrystalDecisions.CrystalReports.Engine.dll, CrystalDecisions.Web.dll and CrystalDecisions.Windows.Forms.dll.
Database_Access.msm:
The database_access.msm is used to install all database drivers the report uses to connect to various types of data sources. This merge module also installs export destination and format drivers, which is used to save a report in different file formats, for e.g. HTML, Excel etc. This merge module is used to install all non managed runtime components for Crystal Reports for VS.NET including charting components.
Database_Access_enu.msm:
The database_access_enu.msm is used to install language specific or localized components. Some of the localized charting and exporting components like PDF are installed by this component. Each language, in which the product is released, will have a specific version of this merge module.
Regwiz.msm:
The regwiz.msm is used to configure registration information on deployed computers and in order to track licensing information. A license key is needed when building with this merge module. This is very important. When this merge module is added to the setup project, it exposes a LicenseKey Property that must be set before building the project. You can find this property by first highlighting the merge module in the Solution Explorer and in the Properties pane under MergeModuleProperties. The license key would have been emailed to you when you register the product. This key is also available from the VS.NET Help|About … dialog, under the installed products list.
If the license key is not set, an error will occur when building the project and if the setup is installed on a target machine, without specifying the license key, various “Keycodev2.dll” errors will occur.

VC_CRT.msm & VC_STL.msm:
These two merge modules are required because the database driver crdb_adoplus.dll is dependent on files installed by these merge modules.
When these modules are added, there is a MergeModuleProperties property which is set to Default. Click the drop down list to select a different folder from default. Select the Browse option to list folders available on the target machine. A system folder needs to be added before you can set this as the new target folder.