SQL Server using 15GB of Virtual Memory

How much of the memory resources are you allowing for SQL ?
The answer to the well thought out questions by delthe will answer whether the resources are properly allocated.
What else does the server do?
Web, exchange, terminal services, etc.?

No other roles what so ever,

Will do what Dlethe suggested tomorrow and see what I can find out.

Note, I foolishly didn't cite the source of my post above in #33109153.  This is from the http://www.sql-server-performance.com site, that has a great deal of tuning information. Give credit to them, not to me.   Really, you could just go to that site and spend hours going over proper tuning procedures.  I highly recommend just spending time on one of the tutorials.

Memory — Pages/Sec: 0.000

Network Interface — Bytes Total/sec: Averages between 5KB and 50KB/sec

PhysicalDisk — % Disk Time — _Total: stays under or around 1%

PhysicalDisk — Current Disk Queue Length — _Total: stays at 0

System — % Total Processor Time: Averages around 5%

System — Processor Queue Length: Stays at 0

SQLServer: General Statistics — User Connections: Around 30

SQLServer: Access Methods — Page Splits/sec: Stays around 0 but jumps to 8 or so on occasion

SQLServer: Buffer Manager — Buffer Cache Hit Ratio: Stays around 99+

SQLServer: Memory Manager — SQLServer: In the ball park of 40GB

SQLServer: Memory Manager — Total Server Memory (KB): In the ball park of 14GB

The system looks pretty idle, so do you have a network problem?  Drill into the network controller & look for problems.

The application speed is the same on the server as it is on the client. I ran my speed tests, and using the application on the server it self to leave the network out of the issue.

64bit OS yes
As for SQL:
Microsoft SQL Server Management Studio                                    9.00.4035.00
Microsoft Analysis Services Client Tools                                    2005.090.4035.00
Microsoft Data Access Components (MDAC)                                    2000.086.3959.00 (srv03_sp2_rtm.070216-1710)
Microsoft MSXML                                    2.6 3.0 6.0
Microsoft Internet Explorer                                    8.0.6001.18702
Microsoft .NET Framework                                    2.0.50727.3607
Operating System                                    5.2.3790
DB is about 3.5GB

Do you have auto-shrink on under the properties/options of the database?

I think someone has suggested that you run the  server profiler/engine tuner to see whether adding an index may speed up performance.

The issue you are dealing with is subjective such that it is nearly impossible to determine whether it is really slow or you have complex/unindexed queries.

You can with SSMS get an execution plan for a query to see whether that is the cause for the slwo responses.

Auto shrink isn't turned on
Where can I get more info on running the Server Profiler/engine tuner and adding an index?

Unless you set a maximum memory to be used SQL Server will attempt to use all it supports for that edition.

The real problem is that you have a query or queries that are taking a long time.  Your first task is to identify the queries that are slow.

start\programs\sql server 2005\ has both.  You first have to use the profiler to record a snippet of transactions.  Then you use the captured data as input to the engine tunner.

The SQL books online should have this information as well as other suggestions on tunning your sql server.