We are running a Win2003 Terminal Server cluster and are having problems with the Quick Launch bar in user sessions. Let me start by saying that the Terminal Servers are locked down via Group Policies.
Users can delete from the Quick Launch, but they are unable to change the order or add things to the Quick Launch by drag and drop. Users can open a command prompt and copy things into their %userprofile%\Application Data\Microsoft\Internet Explorer\Quick Launch and they do show up.
So it's not a permissions issue. That led me to believe maybe something strange was happening in the profile. But that wasn't it either. Next I looked at some of the lockdown policies inside the Group Policies. I went through one by one and tested. The policy that is breaking the Quick Launch is:
User Configuration\Administrative Templates\Windows Components\Windows Explorer
"Prevent access to drives from My Computer"
It's "Enabled" and set to "Restrict A, B, C and D drives only"
I can't find anything via google about other people that have experienced this. Microsoft doesn't mention anything in their knowledge base either. Why does this policy break Quick Launch?