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.
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http://support.microsoft.com/kb/888820