Terminal Services Showing Server Windows Updates

Our network is comprised of a Windows SBS 2008 Server, Windows 2003 Server and a Windows 2008 Standard Server. For several months now we have been using Terminal Services to run a third party accounting application on the 2008 standard server, Terminal Services is running fine but I recently noticed the server's windows update icon at the bottom right of the TS client prompting updates are ready to install.

How would I hide this on the TS client?
Thanks.
JimArterAsked:
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JimArterConnect With a Mentor Author Commented:
Can you explain loopback policy?
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SIM50Connect With a Mentor Commented:
You can try to create a GPO and enable this option : User Configuration > Administrative Templates > Windows Components> Windows Update > Remove access to use all Windows Update features.
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JimArterAuthor Commented:
Thanks Sim50. I was thinking about this but would this affect all the workstations on the network? They like to have their updates downloaded and they install them when they have time.
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SIM50Connect With a Mentor Commented:
You are right, it will effect them on their desktop as well but you can set it up as loopback group policy.
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JimArterAuthor Commented:
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