I have not used version 7.0 but you might have the same options.
If you are not using ODBC Datasource,
After you launch crystal reports, you will be prompted to enter the database info.
So select the new connection. Select Database fiels or Access/Excel (DAO). Both options work. Then choose your file. Then you just have to drag and drop fileld from your excel file to the report.
I have not created a report out of excel using ODBC. Someone with the expertise might provide you a solution.