We had upgraded from Terminal server from server 2003 to 2008 last year. We had moved the user profiles and kept the same format for the folders. So on server 2008, the user folders looked like C:\users\%username%\applic
This was working fine until it seems that there was an update that changed the permissions, and this would not work anymore. Talked with Microsoft and they showed me a work around
Had to go into each use account and change the appdata and application data to appdata.old and application data.old. When the users logged back on it created a new appdata and this worked. Then had to move over some files, like the NK2 and signature folder for Outlook.
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by: rtjdamenPosted on 2009-06-07 at 23:55:59ID: 24569620
We also experience this problem, i found out that this has to do with the memory usage of the local session manager. the lsm.exe proces will grow each time an user logs on to the terminal server. When the memory usage grows above 100mb of memory the lsm process gets one big disaster.
I'm testing this situation on an test box and till now i could not reproduce this problem. I will install software step by step to see what causes the problem. Are u using any special things like mui packages, antivirus or virtual applications? Maybe this will help me in the right direction. When i found the solution i will let you know.