Thanks Gary for your reply, but I don't think we can use any version of oracle reports because this new version of OTM does not support reports (older version) with dynamic ref cursors. I came to know about this when I did a search on metalink. But what they didn't specify is which version of Reports builder supports this version of OTM.
I am getting following error when I try to run my report through OTM:

REP-271187990: Virtual Memory System error.REP-0200: Cannot allocate enough memory.cavaa 22REP-0002: Unable to retrieve a string from the Report Builder message file.REP-271187990: Cheers
Ravi