While logging onto server 2008 terminal server, it will just set there showing "Please wait for Local Session Manager". It can take up to 5 minutes before finally logging on. Also, when users open a new email in Outlook 2003, they get an error saying "Microsoft Word is set to be your e-mail editor. However, Word is unavailable, not installed, or is not not the same version as Outlook. The Outlook e-mail editor will be used instead. You don't have appropriate permission this operation" If I make the user a domain admin, then these issuses go away. Obviously this is not an option.
Everything was working before the weekend, and then things went haywire. There was an update KB950050 that was installed.