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Windows 2003 terminal server slow graphical rendering

I am having trouble with our remote users over the WAN. We have T1 at both location using ISA for our VPN connection. when accessing terminal server using RDP. the screen refresh is very slow. I have try changing the experience setting from custom to modem 56kbps on the client side that run from a Dell OP 745. When I use RDP on site there is no issues. is there some other settings that could be changed to help with this issue, ether on our server, GPO, Desktop and or RDP.

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Michael Worsham
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What kind of application are you running on the terminal server?
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Office 2003, Adobe reader, File Maker ver 6, Right Fax for our users
You might want to check to see if this is more of a network issue with the RDC clients accessing the terminal server:

http://ts.veranoest.net/ts_faq_administration.htm#monitor_bandwidth

What kind of PC is accessing the terminal server -- XP or Vista?
Also are wallpaper's enabled or disabled on the RDC?
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The PC is XP Pro SP2, CPU 2.8GHz with 1GB of memory.  yes the wallpaper are disabled on the RDC but even when clicking on the start button the refresh is slow. on another note when I access the terminal server from home it seams just fine using our VPN connection then RDC. I will run the netmon and see what i can see from than.
Are there any errors showing up in the EventLog on the TS server or any of the PCs using RDC?

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there are no errors in ether systems event logs
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mwecomputers ,
everything you have sent me has been great advice. I have received the XP hot fix from MS and will install it on the remote system tonight. Lets see how that does.
The other KB Article's and EE solution dont really apply because I dont have any other application open.
The problem is more when browsing the internet and just clicking around in windows.
A few years back I had some slowness issues over RDP from a XP desktop and was able to find some reg's hacks for MTU just dont remember when I found them. Any ideas?
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mwecomuters: I have applied two of your solutions that was recommended and they help us a great deal. It is now more a bandwidth issue that we will be taking care of when we bond our 2 T1 line. Thank you for all your help.
I don't know what hardware firewall/vpn router you are using, but I will recommend what I use for load balancing needs -- Linksys RV082. You can hook up two Internet lines to it and have it do load balancing or connection redundancy. Plus it has the capability to handle up to 100 VPN tunnels.

Linksys RV082 Reference:
http://www.linksys.com/servlet/Satellite?c=L_Product_C2&childpagename=US%2FLayout&cid=1115416833289&pagename=Linksys%2FCommon%2FVisitorWrapper&lid=3328956699B01

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We have 2- CISCO 2821 at each site and ISA is handling our VPN over a T1 line. We are in the process of changing out ISP provider and with the change we will have two bonded T1's connected to the ISP providers ADTran Device so I can connect directly to our ISA servers removing the CISCO layers. This will handle the 35 users at our remote site connecting to the terminal server. Right now it was setup before I got here having all desktop users accessing everything from their location to ours so the T1 is slowing down handle that much traffic coming across the wire.