In Crystal Reports go to the File menu. You'll see a property for 'Save Data With Report'. turn this off, re-save the report, re-add it to Console and you should find you get prompted properly.
I did the other thing... opened report options under file menu and unchecked the "Save Data With Report" check box; and added this report to console but did not worked. Now I did as you said... Amazing it is working now and it prompts for parameter value.
Thanks a Lot.