Sql Server 2008 Nesting Views

Is there a general best practice on whether or not to use nested views? Is there a performance hit when using nested views? Is there a best practice that says there really isn't a performance hit until you go 4 or more layers deep?

The reason I'm asking this is because I'm struggling with whether or not to use them. It is not unusual to get a report request of which the only way I can get access to that information is by joining 20 or more tables together. Fields are not returned from all the tables but are needed to select the correct data. In this case I like nesting the views and reusing the lower level views for other reports because if a change to the logic is needed I just update one view and all reports are updated. Many of the tables I work with contain millions and millions of records.

However perhaps this is not a good practice. Do you mind sharing your thoughts on this?