Your slow report issue is related to using CE database. I have never used V2 but I think it supports SQL Server as database. If it doesn’t you can upgrade to V3 which does support SQL Server. That should resolve the speed issue. I think SQL Server 2014 won’t work on XP as well, probably need to use 2008 or 2005 edition. However you can read guide to installing SQL Server here (which is for V4 / V5 but at least gives you an idea of the steps involved):
You won’t be able to get much support on this forum for V3, so you are best to upgrade to V4 or V5.
So if you can upgrade from XP to Windows 7 (which you really should - XP is no longer supported by Microsoft so you don’t get any security updates, etc.), then you can upgrade to V4 or V5.