Skunkers,

Here's the scenario:

There is a core application that is build on a 2 tier client/Server architecture.

Total number of users at any one time over a WAN is approx 100.

The app runs on a MS SQL 2005 DB that resides on a Primary server whose specs are as follows:

1. RAM: 40 GB
2. CPUs - 8 Proliant QUAD Core E7320 2x2M cache processors
3. Network Interface: Gigabit ethernet card
4. RAID 5 config for the main DB drives - where the main DB files reside. 
5. RAID 1 + 0 config for the log files on a seperate disk
6. WAN traffic is on 256k/256k links from satellite locations

The problem: 

1. As users are being added into the WAN, performance has been deteriorating.
2. On report generation, everything seems to crawl to a halt.

What are the likely contributors to performance degradation?