I don't think Reports is even getting to executing the query. This sounds more like a Reports Server problem. Without any version information (Reports, OS) it is impossible to tell.
As a general rule of thumb: run the report in debug mode to see what is going on.
Trace the report o/p . The tracing file will give you the exact query along with the parameter values which the report builder is executing.
I had already tried to enable trace. But when I enable trace, report builder crashes!!
I created SR also, and oracle says that they do not support 10.1.2.0.2. I should update to 10.1.2.3.
I installed the 10.1.2.0.2 in xp mode and tried to update with 10.1.2.3. However, the updgrade failed saying that there is no update patch required/found or something like that.