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CTFMON and Terminal Server Performance

I am having some slowness issues with my 32 bit terminal server. It has two dual core Xeons, 4 Gb of memory and hosts roughly 50-60 users. I posted awhile ago and am looking in to a few of the comments I received still. Users mention that their POS application hangs for a brief periods, this software uses an SQL database off another server. The SQL server has been replaced. They use some office functionatlity and internet from time to time as well.

I had two more questions for everyone.

1.) the /PAE switch is currently enabled. Could this cause a similar issue as the 3G or 4 G switch does with limiting the kernel for the Term Serv Sessions to 1 GB instead of 2?

2.) CTFMON.exe is running on the actual server. I have read this can cause issues. What types of issues can this cause, and what does it exactly do? I know it has to do with Office.

Thanks.
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taabello

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I have read it can affect the performance of the term serv sessions though. Would it have to be running within each session to cause an impact or just the actual host server?
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