[Quote]1. Moving mdf,ldf,tempdb to seperate drives.[/quote]
Yes, you want to do that anyhow but yes, do that.
2. Create 2 server one for transactions and one for reporting ,replicating data to second server through always on or replication mechanism.
Yes, this will help tremendously. As a general rule it's best to separate your OLTP and reporting. Plus, with a reporting server you can index the heck out of it and do a lot of other things that you don't want to do on your OLTP system.
-- Itzik Ben-Gan 2001