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There are some HOLD files in the procedure used FORMAT FOCUS INDEX FIELDNAME. Have removed and have my administrator run the report from the server. It worked. Report server is on the AIX platform. Not sure whether it has anything to do with the permissons or settings.
Regards, Kasi Krishnan WF 7.1.4 & WF 7.6.9: Databases - DB2, SQL Server 2000. OS: Windows & AIX