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Web Browsing Issues in Citrix/Terminal Server

Hello, we are approaching a desparate point with issue. We have a client that uses citrix Xenapp fundamentals 2.0. Everything was working fine on the old server. We just recently migrated them to a new server. The new server is still running the same version of xenapp and also the same OS - WIndows Server 2003 R2 SP2. The only difference with the new server is that it is faster hardware.

For some reason, on the new server, REMOTE users are having issues browsing the internet. Internet Explorer ends up hanging their entire citrix session. Usually, the sassion will come back to life eventually (once the page has completely loaded) but sometimes this can take anywhere from 10 seconds to a minute. It seems that pages with Flash were the biggest problem so we ended up turning off flash. This seemed to help to a degree but Internet Explorer still hangs quite fruequently.

The strangest part of all this is that  this DOESN'T happen for users that are on the local network They have not had any issues. This only happens to users that are at our remote office. Of course our first inclination was to think a bandwidth issue but that doesn't explain why these remote users had no problems on the old server

We've even attempted to rdp from these clients directly to the citrix server and it seems that the issue is still present so it doesn't necessarily seem to be a citrix issue. Any ideas would be greatly appreciated. We've already opened 3 tickets with Citrix. They have no clue. We are using IE 7 (same as on the old server). We also tried Firefox but experienced the same problem. Please help!
CitrixWindows Server 2003

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yes, there were some GPO's but we have since disabled those.
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Windows Server 2003
Windows Server 2003

Windows Server 2003 was based on Windows XP and was released in four editions: Web, Standard, Enterprise and Datacenter. It also had derivative versions for clusters, storage and Microsoft’s Small Business Server. Important upgrades included integrating Internet Information Services (IIS), improvements to Active Directory (AD) and Group Policy (GP), and the migration to Automated System Recovery (ASR).

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