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Please wait for local session manager, takes forever

Users are logging into the Windows Server 2008 terminal server, and the Please wait for local session manager message appears for a good two minutes.

Any idea why this is happening?

The server has been restarted since the issue has appeared.
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rtjdamen

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.
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