"The system cannot find the file specified" error message when you try to connect to a Terminal Server that is located on a Small Business Server 2000 domain (888820)

SYMPTOMS

When you try to establish a Terminal Server session to a Microsoft Windows Server 2003-based member server or to a Microsoft Windows 2000-based member server that is located on a Microsoft Small Business Server (SBS) 2000 domain, you receive the following error message:

The system cannot find the file specified. The working directory is invalid: %allusersprofile\Application Data\Microsoft\BackOffice\Management\.
Please check the working directory in the client configuration.

Note This problem does not occur if you use an administrator account to establish the Terminal Server session.

CAUSE

This issue occurs when the following conditions are true:

You use the Add User Wizard to create a user account.
The Allow logon to Terminal Server option is selected on the Connection Access page of the Add User Wizard.

This combination of settings changes the following user environment settings:

The Start the following program at logon option is enabled.
Mmc.exe MySBSConsole.msc is entered in the Program file name area.
%allusersprofile%\Application Data\Microsoft\BackOffice\Management\ is entered in the Start in area.

These settings are not valid when Terminal Services is running on a computer other than the SBS 2000-based server. Both the program that is specified in the Start the following program at logon area and the path that is specified in the Start in area are valid only on the SBS 2000-based server.

RESOLUTION

To resolve this issue, clear the Start the following program at logon check box. To do this, follow these steps:

Click Start, point to Programs, point to Administrative Tools, and then click Active Directory Users and Computers.
Right-click the affected user, and then click Properties.
Click the Environment tab.
Click to clear the Start the following program at logon check box, and then click OK.