Aashutosh, None of your solutions works for me. Thanks though
Please grant user Full control if possible and explicitly deny some rights such as Object deletion and other that you don't want to grant the users.
Full control for the users 
. For your information I am using custom level access level and seem everything works fine expect this.
I tested with following rights and worked for me:)
Please let me know what you tested ?? Based on the blogs did you created Dynamic measures, please confirm.
Grant following rights:Reporting-Enable Formatting, Reporting - Create and Edit Input controls.
I have already given this rights before but the dynamic measure with input control is not working. I still assume some right is missing.
Please set Web intelligence preference for view as Rich Internet Application
The preferences are already in Rich Internet Application.
I am repeating my question again.
you are able to create the dynamic measure scenario sucessfully with Administrator ID.
But when users are trying to use the same features, its not working. Correct ?
From the statement, It is YES. As developer or administrator the dynamic measures are working successfully. But users cannot.
We are on 4.0 SP5
Here are the blogs :
http://blog.davidg.com.au/2011/09/dynamic-measures-in-webi-on-any-data.html
http://scn.sap.com/people/chris.cai/blog/2010/08/05/dynamic-measures-selection-with-webi
For your info this are already enabled.
Reporting - Create and edit report filters and consume input controls.
Reporting - enable formatting