TerminalService window blank after logon

I am running Terminal Services on a W2K AD domain controller. I have followed MS’s kb247989 guide and have set the log on locally parameters to allow anyone and everyone rights to log on locally. Whenever a ts user tries to log on to the TS server, they get a blank desktop. However, if I make the ts user a member of administrators, I get a desktop after logging on. The only way I get a desktop is if the ts user is a member of the administrators group. What am I missing? I only have one server and am connecting over a vpn with the ts client.