Question : Terminal Services clients blank desktop and no icons on Windows Server 2003

I have a server that is running Server 2003 Std SP2 with terminal services and it is not on a domain.  I configured terminal services for application mode and it is licensed correctly.  I created a local user and added them to remote desktop users account.  When the user logs in to the terminal service via mstsc from a workstation it successfully logs in and then nothing else happens.  No icons or desktop are shown.  If the user is a member of the administrators group it works fine.

No errors in the event log or anything obvious.  I've tried to use filemon and regmon to watch while the user logs in.  Nothing obvious showing up either.  I've also tried to promote the user to a power user and still get nothing.

I adjusted the settings inside of terminal services for active desktop on and off, multiple logins, etc.  I've also tried rebooting the server, opening multiple connections fix (running 2 simultaneous connections to restore the icons).  The sessions arent stuck and have been reset and lastly have created new user accounts to test with and all still no luck.

Any ideas?

Answer : Terminal Services clients blank desktop and no icons on Windows Server 2003

Just as any FYI for everyone... what fixed it was this KB http://support.microsoft.com/kb/909444/en-us

Basically it was permissions in the registry and C:\ drive, Windows directories, etc...  Missing everyone and authorized users...