You have to use a record selection formula that uses the Left(data field) function to just get the first few characters of the field and you also have to use the Len(parameter name) function to see how many characters the user entered in the parameter.
This involves a few steps:
1) Create a parameter and set the minimum length to 2 (found at the bottom in the Options section). For this examplanation, I called mine "Name Filter".
2) Create a record selection formula and use the following syntax (substituting your own field names) and I used the Customer Name field as my data field.
//Crystal Syntax
Left ({Customer.Customer Name}, Length({?Name Filter})) = {?Name Filter}
HTH,
Brian B