Quickbooks Pro 2012 on Terminal Server 2003

Problem with Quickbooks 2012.  While in a company file using the Employee menu - under Payroll Tax Forms & W-2s - Process Payroll Forms - State Form.
When the Select Payroll Form window show up.  You have a choice to select which state form.  Normally it would default to your local state.  For us it defaults to none and when you open the drop down list not all the states are listed.   When talking to Intuit support for many hours, they keep saying it has something to do with the regional and language options in windows. I have gone over those settings and they all look good.
I also copied the data file from the terminal server and installed Quickbooks on a Win7 pc and it works fine.  So it has to do with something on the terminal server.  We have used quickbooks on the terminal server for years and then suddenly one day we had this issue.

Any ideas of what in windows could be messed up that is not allowing quickbooks from displaying the states correctly and/or reading the regional options correctly would be appreciated.
David BarmanAsked:
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Tony GiangrecoCommented:
One of my clients upgraded to QB 2012 from 2011 yesterday and she ran into an immediate bug requiring QB support. We both have used QB for about ten years and we had nevrer seen the problem before. Your's is a bit different but it's still ver 2012. I would suggest calling QB support to see if they have a fix.
David BarmanAuthor Commented:
I tried that and so far no luck. It's obviously something on the terminal server but I have no clue where to look
Tony GiangrecoCommented:
Try logging as the administrator and see if it works. if it does, it's probably a GPO restriction the users get hit with.
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David BarmanAuthor Commented:
Nope.  It does the same as the administrator user
Tony GiangrecoCommented:
If you just ran the QB updater this week, it's probably the latest update that came down. As I mentioned above, that latest update brought an additional configuration requiremnt down into a client's laptop where the DB is stored on the server. QB Support was contacted and they applied a cjange that resolved the problem. I don't know what they did. I was not there.

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David BarmanAuthor Commented:
Reloading computer OS resolved the issue
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