User with Roaming profile from AD 2003 cannot open application on Remote Desktop Server 2008
I am having an issue running applications for users with roaming profiles on a new server running remote desktop 2008 R2 (formally Terminal Services). I get an error that says it is unable to create a specific folder in the 'C:\\Users\auser\appdata\roaming\new folder name''
I have looked and many forums have issues with users using Active Directory from 2003 and TS of 2008. However I could not find any fixes.
I can take that same user and remove the roaming profile path in AD and the application on RDP 2008 run fine. I do not understand what is causing this?