>>with making sure that there is an index on step1.cUsGrLink_pk and
>>on TEQ.cTrans_Employees_Queues_pk and
>>on EQS.cTrans_Employees_Queues_fk and
>>on TEQ.iActive_Flag
>We don't have indexes on iActive_Flag (it's integer field 1/0). We have other indexes. The Step1 is created on the fly, so it doesn't have indexes. I can create it as a separate step and create an index on it.
>

If "Step1" is created on the fly then it seems to me you should be able to do some of the 'filtering' when you create it.

>The other idea we have is to create DLL on the server to retrieve data. I would have to return it as XML. The resulting file should have ~350 records and 2 fields, so I don't think CursorToXML/XMLToCursor would be slow.
>
>But we're having problem registering DLL on the server.

But of course - for you it is after 2pm on an Eruv Shabos :)