How to conigure AppLocker for a Terminal Server via Domain GPO

I'm trying to restrict apps running on my terminal servers for RDS users as part of my malware prevention strategy..
I wish to control this via a Domain GPO
After a lot of googling around, I'm a little confused still...

I have created the GPO, and am using path based filtering..
Say I wist to allow everything in C:\Program Files on my terminal server to run, in the Executable rule in the GP on the DC, do I just enter "C:\Program Files", or does this path have to be relative to the domain controller and I enter something like "\\terminaServer1\c$\program Files"?

Additionally, does the Application Identity service have to run on the DC or the Terminal Server?

Thanks in anticipation.

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First of all: no experiments on the production network. This is a very dangerous area.
You should inform yourself first, then setup a test machine and deploy GPOs to it. You should start with building the default rules that already allow anything in c:\program files and c:\windows (which are protected areas).

That service needs to be running at the machines where applocker should protect, not on the DC.
You use local paths, not "\\terminaServer1\c$\program Files".

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jcm4101Author Commented:
Yea, I don't actually test on production servers.. I have a dev network for such items.

Great answer though, cheers
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Windows Server 2008

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