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The dimension key size in 126.96.36.199 is limited to 60 characters, so if any of your members has more than this, then you will run into the problem. Did you clear the dimension before reloading the data? If not, then existing members (longer than 60 characters) would remain in the dimension even if they are no longer in the source table.
Yes I did clear the dimension data before reloading. The issue turned out to be multi byte characters in the data. I was using substr(column,1,100) to create the dimension key. It seems like the dimension key is limited to 100 bytes, not characters. Using substrb(column,1,100) for the key fixed the issue.
I think this problem may have been addressed with a fix to Bug 14167351 - ORA-33674: DATA BLOCK EXCEEDS THE MAXIMUM SIZE OF 100 BYTES. This fix went into the OLAP D patch for 11.203 of the database.