I have setup a terminal server and thin clients and all works well.
I wanted to increase security so I created a group policy and chose the policy “Prevent access to drives from My Computer” and selected the “Restrict A, B and C drives only” option. It works great, users can not access teh C: drive in anyway on the terminal server.
The problem is that they no longer can copy things to thier desktops either. They do have local profiles on the terminal server, so I setup roaming profiles and set the location to store them on the D: drive that they do have access to. Still the same problem.
Thanks for all the help.