In Database Expert, find & expand the 'More Data Sources' node.
Then, select 'File System Data'.

Alternatively, you can use a User Function Library (UFL) with file functions such as checking if files exist, copying, and deleting files.
Ken Hamady maintains a listing of Crystal Reports UFLs here.

Its not under Database Expert. I didn't know about UFLs. Ill look into it. Thanks, but I would like to know why File System Data doesn't show up in my Crystal.

Its not under Database Expert. I didn't know about UFLs. Ill look into it. Thanks, but I would like to know why File System Data doesn't show up in my Crystal.

Perhaps you turned that option off in the installation options.
Try to run the install/repair again and go into the data source options.

We did, and didn't see it as a option. Does anyone with Crystal Report 2016 have it?

I have Crystal Reports 2016 and I do have that option.

My Crystal say SAP Crystal Reports 2016 for Sage. Is that a normal Crystal edition or limited?

'for Sage' is not the generic name for Crystal Reports.