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Terminal Server Mode Change Isn't Seen In Add Programs

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Last Modified: 2013-11-21
I'm setting up a Windows 2003 R2 terminal server.  In the Control Panel under Add/Remove Programs, then under Add/Remove Windows Components, I've selected Terminal Server and Terminal Server Licensing.  Licensing has been activated and TS CALS are on the system.

My problem is in trying to install any application for users.  I get a command session going and type in "CHANGE USER /INSTALL" and get the response that I'm in install mode.  I can do a "CHANGE USER /QUERY" and get a confirmation that I am indeed in install mode.  When I go to Add/Remove programs and try to actually do the installation, the message, "This machine is running Terminal Services in Application Server Mode.  Applications are not available to install from the network in this mode." won't go away.

Why can't I do the installation?
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