Sorry for the lengthy absence. I got swollowed up in my project.
I was able to review the source code and duplicate the bug. To me, I consider this a bug. To Business Decisions (own Crystal Reports...for now) this may be a feature. The default behavior of the data form field seems to be to grow to the right. The can grow property seems to control vertical growth.
I was able to find one solution that doesn't take very much effort. I stopped there rather than dive into a code solution but I suspect this can also be genereted by the code side.
To start with, make sure the value in the report field is a text string. If it is, then this format edit will truncate the text to be the same size as the box on your form.
Right mouse click over the report field on your report and click 'Format Object'. On the Paragraph Tab choose the 'Text Interpretation' value and change it to 'RTF Text'. This will truncate text values.
Now on the example, we used the the AdventureWorks SQL database. The field we used was Production.Product.ProductNumber which is the type: nVarChar(25). This did not truncate properly until I created a function on the Crystal Report that converted it to Text. Then I inserted the function field rather than the Report Field on the report and set the format to RTF Text as noted above. This allowed it to truncate to the length of the box.
The function was easy. Create a New Function in Crystal: I named mine ProductNumberTrim and set the formula to : ToText({Product.ProductNumber})
It wasn't that bad to correct but a bit of a nuesance. If there are some coding ways to do the same thing someone can run with it and post it here but I don't think it would save any effort.
This worked for me in Visual Studio 2005 Crystal Reports version and in Crystal Reports 11.5. Good luck.