Terminal server location for local profile Outlook has changed

Recently on a heavily used terminal server, users who connect to that terminal server are reporting that both their signature and "autofill" of contacts (.nk2 file) is no longer present. Doing a search on the server, I have found that the Outlook folders has changed location from C:\users\username\application data\microsoft\outlook to C:\users\username\appdata\roaming\microsoft\outlook. The terminal server is on the company's domain, so that external staff can connect to the server and log in with a profile from their own home computers.

The signature files was found in \application data\microsoft\signatures and \appdata\microsoft\signatures. The .nk2 file was of course found in the Outlook folder itself.

Any idea why this change might of occured, and how? Copying over the NK2 file to the new location solves the missing NK2 file issues, and some goes when moving over the signature.
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Did you just recently upgrade the server or Terminal Server?

newgentechnologiesAuthor Commented:
We had upgraded from Terminal server from server 2003 to 2008 last year.  We had moved the user profiles and kept the same format for the folders.  So on server 2008, the user folders looked like C:\users\%username%\application data

This was working fine until it seems that there was an update that changed the permissions, and this would not work anymore.  

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