Please tell more on what you think it should look like as when I run this report I don't see a problem unless you expect that the sub-report at the 2nd level starts at the same horizontal position as the sub-report at the 1st level. And that is not how it should work as you start the 1st level sub-report with a page header and inside the body section you print the results of the 2nd level sub-report. If both sub-reports where at the same level (siblings thus) they could start at the same "line".