When regular users try to open Outlook 2003 on Server 2003, they receive the following error... "Cannot start Microsoft Outlook. the program is not registered properly. Please run setup again". When same user is added to admin or power user group, Outlook starts normally. When removed from the elevated group, the error returns. When Outlook.exe is copied to the user desktop, it opens normally. In fairness I will mention that this is a Terminal Server, but I have seen many posts with this exact error in non TS 2003 so I don't think it is relevant to the problem. However, Office was installed using TS Application mode installation instructions. I've been working on this for several days with no fix yet. Posting here is my last hope before resorting to a work around.
I have removed and reinstalled Office, tried all of the usual start up switches, registry and folder permissions. You will notice many examples of this problem on EE and the web but none with valid answers.