Crystal Report Licensing

I'm a bit confused about licensing the Crystal Report 8 that comes with VS.net.
From the documentation, it says if the client is a thick client and the report is generated at the client side, then the runtime is free for redistribution.

But if the report is generated at the server, then the CALs have to be bought.

What I don't get is when would there be a case where the report is generated at the server side, other than in an ASP environment?

Does it mean if I got the .rpt file in the server, then it's considered the report is generated at the server side?

Can someone shed some light (or give an example) on when I would need to get extra licenses and when there would be no need for extra licenses for Crystal Report?