I have compaq double processor Windows 2000 server with 700 MB RAM (400 MB used
actually, remaining seems to be free).

I have 15 W2K terminal server users and
20 100 MB LAN users
all they are running single VFP 7 application
This application uses dbf files directly in server hard disk.

However, the perfomance for large queries is somewhat slow.

How to increase perfomance ?

Is it reasonable to upgrade to W2K Advanced server and use more processors.

W2K server allows only 2 processors, W2K advanced allows up to 8 processors.