Retrieving data/Opening reports too slow

Hi Experts,
We have a Finance Application with 12 dimensions. Two of those dimension holds a lot of members Product has 16,000 members with 7 hierarchies and the customer dimension has 40,000 members with 3 hierarchies. On the first part of our development we haven't encountered any trouble opening reports specially for a template which expands for almost 9,000 rows of members. After uploading 3 months of data with almost 400,000 lines each. We are now having trouble opening reports or even retrieving the data using ADHOC reports.
We've already tried various performance tuning and still there are no improvement. We also deleted the uploaded data to see if it's causing the low performance but still the performance is still the same. Any suggestion what's causing this?
By the way we're currently using BPC 7.0 MS SP03. We're using a single server setup. Server Memory is 10GB and Hardisk free space is 100GB
Thanks,
Marvin

Hi Sorin,
Sorry I forgot to mention that I've already tried removing other hierarchies leaving only two hierarchies to test if there is an improvement in performance but its still the same. And also other application which are far less complicated than Finance application and do not share the Product and Customer dimension are experiencing slow retrieval of data in reports. And yes, I build those hierarchies for reporting reasons, actually my first option really is to use properties but the clients requirement is for them to be able to drill-down each groupings that's why we've set them up as hierarchies.
We've already tried creating partitions but still there's only a slight improvement in performance.
As for the reports, we just created simple EVDRE to test if the design of the report is causing it but even a simple EVDRE hangs.
Thanks,
Marvin

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