Office apps on Terminal Server

We replaced our old server NT 4.0 with a new Windows 2003 server. Then we installed Windows 2003 Terminal server on the old server. We installed Terminal server in application mode and purchased 5 TS-CALs. We have installed Great Plains and now Office 2003, but when we run Office 2003 from a Terminal Service session, Word, Excel, etc. all give the error – ‘This feature is not available. Contact your System Administrator.’ That’s it. When you click OK, the program exits. We installed Office via Control Panel Add/Remove. If we log into Terminal Services as Administrator, they all run just fine. This is probably a simple rights or licensing issue, but I haven’t found the solution yet. Your thoughts would be very helpful.

Thanks,
Jon