SQL Server Nested views, how deep is too much?

I stumbled on a problem using views. The content management system my program interfaces with, defines a view which calls another view on the system. That is 2 levels to begin with. Before I stumble on views, I thought nested views were casual, but after my code blew up and i googled around, i begin to pick up words like "sin" and "vulgar" and "bad" which are associated with nested views.

Well I have two-level nested views to begin with. In my application level, I define my 3rd level and that’s when it gives me time out error. Is 3 level too much? The tables are not terribly big — between 5,000 and 100,000 records, while my view itself only produces 2,000 record. Is this suppose to break the camel’s back?