I have a peculiar issue with terminal server users.
They can not create folders within their redirected desktops.
However, logging the user on to a workstation directly, folder creation on the desktop is fine.
The desktops are definitely being redirected in terminal services and on the workstations as the setting is applied via GPO to the user accounts, I have also checked the properties of items on the desktop to check the location.
The users are the ntfs owners of their redirected desktop folders.