Office XP cannot send attachments

We are running Windows 2003 server with Terminal server installed. We have several users that can no longer send word or excel files as attachments while working within either program. They could at one time, They also do not have the option to send to an exchange folder.We have not installed any new software or made any changes. We are running MS Exchange 5.5 sp4 on a seperate server running on NT 4.0 sp6a.

If we add new users they have the option of sending files as an attachment. Deleteing the users profile and recreating it does not solve the problem.

The option to mail as attachment is checked within Word.
I have checked the win.ini file and made changes to it as recommended on MS website. All users have MS outlook 2002 (aka office xp standard).

Any help would be greatly appreciated.

Thanks, Mike