Webservice request process problem at IIS running on Windows Server 2003


hi,
i have webservice (.net 1.1) deployed on windows server 2003. same machine has database sql server 2000.
the webservice methods interact database.
this server machine in lan (without having internet connection) , 30 clients (having windows xp home) connected server in lan server (note: not client/server setup, no domain set up, p2p connectivity)
now each client connects webservice each min. each min. 30 requests processed on server.
this way client , server machine interacts 18-20 hrs day
now problem is:
- after time, starts taking long time complete process. webmethod interacts database , 1 update operation should not take time.
- hangs around more 2 min , 5 min. if 1 request 1 machine takes such time possible more 1 request performed 1 after after 2-3 or 5 min.
- not suitable application need.
- had put default request time out (90 sec) , if service cant response in time, disconnecting client. have increased 5 min , working fine still times takes more 5 min , @ time had disconnect client application.
- of time web method performs within second(s) why taking long times?
- happens daily 5-6 times minimum.

what want:
- want each request should return in max minute next request dont queue
- if exceeding request timeout, had disconnect client app server due application requirement makes problem clients want remove without increasing request time out.
- can please guide in scenario?
- should configured in iis on server handle such problem? have used default settings in iis

please guide,

thanks in advance,

i monitor application server performance monitor see going on during these long processingt iems.

is possible server running out of virtual memory, backups taking place, or aren't freeing resources adequately?

check event viewer exceptions/errors may find out whats going on.


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