RemoteApp and MDI child windows / Performance

We're using Win Server 2008 Ent R2 and are deploying a 3rd party application via RemoteApp.  Things are generally going well, but we have 2 problems.

The application is an MDI application (trading system) that allows child windows to be broken out from the main frame.  For a trading system, the users have 4 monitors and detach windows and spread them across the monitors.  At times, the updates to the GUI can be frequent as prices blink with market movement.  The vendor tells us it was developed using standard .Net 3.5 libraries to enable the MDI interface and separating child windows.

Neither of these issues happen when the application is run locally on an XP or Win 7 desktop nor do they happen when run directly on the Remote Desktop of the server (traditional terminal server use).  It only happens with RemoteApp.

Problem 1:
When a child window is separated from the main frame, it can only be dragged an inch or two before it stops moving.  I click on the title bar, start to move it, and the window stops moving but the mouse continues.  I can right click on the child title bar and select "move" and it moves freely.  Oddly, moving the same child when it is docked to the main frame, there are no issues; it moves freely.  Ideas???

Problem 2:
The application responsiveness slows way down and even appears to lock when the GUI trying to push a lot of updates.  Imagine a grid with 40 rows and 30 columns.  The system can cycle though 40 new rows of data every half second.  In effect, the grid is completely repainting.  When the grid is not moving at this speed, say not updating at all, the application responds as fast as if it were running locally.  We tested running the application in RemoteApp and on the server desktop at the same time during this heavy update and the app ran just fine on the server.

I've played with the .rdp file and have been playing with settings.  Here's what I have.  From use multimon on down are the settings I've been playing with but none seem to help with the first issue.

redirectclipboard:i:1
redirectposdevices:i:0
redirectprinters:i:1
redirectcomports:i:1
redirectsmartcards:i:0
devicestoredirect:s:
drivestoredirect:s:
session bpp:i:16
prompt for credentials on client:i:1
remoteapplicationmode:i:1
server port:i:3389
allow font smoothing:i:0
promptcredentialonce:i:1
authentication level:i:2
gatewayusagemethod:i:2
gatewayprofileusagemethod:i:0
gatewaycredentialssource:i:0
full address:s:server1.ou1.dc2.dc1.com
alternate shell:s:||CharlesRiverIMS
remoteapplicationprogram:s:||CharlesRiverIMS
gatewayhostname:s:
remoteapplicationname:s:Charles River IMS 9.1.4.3
remoteapplicationcmdline:s:

use multimon:i:1
span monitors:i:0
autoreconnection enabled:i:1
displayconnectionbar:i:1
disable full window drag:i:0
disable menu anims:i:0
bitmapcachepersistenable:i

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