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Sybase iAnywhere SQL database performance issues

I have a client who I manage the server for.  A company has installed a Sybase iAnywhere database for them that tracks inventory.  The software front end is used to enter transactions, etc.  The problem I am having (as they have laid this at my doorstep) is that the system is slow according to the vendor.  If I run a query in the Advatage Data Architect on the terminal server, it returns in between 7 and 60 seconds.  If I run the same query on the DB server itself, it takes 16 ms - MUCH faster obviously.  I would imagine the terminal server query would be a little slower due to network traffic, but I don't think it should be that slow.  

The DB server is Windows 2003 SBS with 8 GB of ram.  It has MS SQL 2000 and Exchange 2003 on it running.  I also have Trend Micro installed on that server.  This server has two dual-core processors.

The terminal server is Windows 2008 with 4 GB of ram and one dual-core processor.  They have maybe 8 users on their server at most at any one time.

Task manager doesn't show either box being hit hard when I do any queries.  Memory, processory utilization and network traffic are all low.

Any ideas about where I can look?
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grant300

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