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default printers in Terminal Services 2003

I recently installed a Windows 2003 R2 server as a Terminal Server.  When users log into the terminal server, the mapped printers show up in the Printers and Faxes window, however, there is no default printer (with the check mark).  When I right click the printer, I can select "Set as Default Printer", but nothing happens, and no check mark appears.  When I try to print from Excel or Word, a message says no printers are installed.
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Also, when I log in as Domain Administrator, the printer that is set up on my desktop as the default printer, does show up as the default printer in Terminal Services, and I can print.  If anyone has any ideas on why this is happening I would appreciate it.
do you have any terminal services group policies enabled

specifically
Administrative Templates\Windows Components\Terminal Services\Client/Server data redirection    Do not set default client printer to be default printer in a session
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all the policies under terminal services in group policy are not configured
what config do you ahev on your RDP connection regrading printers - all defaults?
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I think they are all set to default - are you talking about the terminal services configuration under connections and double click the RDP listing?  Is there a specific tab I need to check?
just the actual properties of the rdp connection, if they are all default that is fine i was just trying to figure out what is going on
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I have a test terminal server set up that is Windows 2003 with no service packs installed.  When I log onto it as a standard user, the printer maps correctly and shows up with a check mark as the default printer.  It is working correctly so I think something must be happening with the R2 version of Server 2003.
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does anyone have an idea of what might be causing the problem with the default printers - I'm getting desperate!

Thanks
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well done mate,  no problems here