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I doubt that this new behavior is coming because maxEngine=2 so I would suggest to revert back the second change you did and see behavior. If behavior continues then I would suggest to enable reports tracing and see what is the latest status in report engine trace file for a particular job request that is hanging.
Thanks Roberto for your reply.
Now Reports were running fine, I removed xampp apache server path from windows folder and put same path at the end of oracle configuration path separated by semicolon.
whenever I made some changes in configuration file weblogic server hangs up and it doesn't allow to run report on web while in report builder it works fine.
What is the reason behind it, is there any permenent solution to this problem.