Was this for the same client that had some issues running Adagio version 6.5 on the upgraded WinXP station (that you posted on PlusCommunity)?

In addition to Novell service packs, look for opportunstic locking being disabled on the workstation.

Also check to see if all reports are affected (ie the company profile report is fairly basic; the AR Aged Trial Balance is not). Some reports create a temp work file on the local hard drive and this may also be an issue due to rights or more likely Novell Client32 advanced settings.