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How to install a Windows 2003 Terminal Server in a SBS 2003 network

How to install a Windows 2003 Terminal Server in a SBS 2003 network

Installing a Windows 2003 Terminal Server in your SBS 2003 network seems an easy task but if you have a look at the GPO's involved locking down the Terminal Server and complicating issues like users who log on to the Terminal Server but also have their own workstation it become a lot more complicated as I found out.

Table of contents

This article assumes that you already have installed a Windows 2003 Server in your network that is ready to be joined to the SBS network. In our example the terminal server will be called 'VIRTUAL-TS'. Before we can add the new server to the Lan we have to create a server account for that server.


Create a server account in ADUC

  1. We do that from the SBS server manager
    Create a server account in ADUC
  2. Choose 'Set Up Server Computers' and choose Next
    Create a server account in ADUC
  3. Choose a name for your new Terminal Server.
    Create a server account in ADUC
  4. Choose to obtain an IP address automatically.
    Create a server account in ADUC
  5. Complete the wizard and click Finish
    Create a server account in ADUC
  6. Like with normal workstations you get the information that you need to join the server using the connectcomputer wizard.
    Create a server account in ADUC

Create an domain administrator account for the Terminal Server

  1. Open the Server Manager and choose to add a User
    Create an domain administrator account for the Terminal Server
  2. Choose Next
    Create an domain administrator account for the Terminal Server
  3. Choose a name
    Create an domain administrator account for the Terminal Server
  4. Choose a strong password.
    Create an domain administrator account for the Terminal Server
  5. Choose the Administrator Template.
    Create an domain administrator account for the Terminal Server
  6. Choose Do not setup a computer because we already created a server account.
    Create an domain administrator account for the Terminal Server
  7. Click Finish
    Create an domain administrator account for the Terminal Server
  8. Choose Close
    Create an domain administrator account for the Terminal Server

Change the role of the Windows 2003 Server so that it becomes a Terminal Server

  1. Logon the Terminal Server using the local administrator account and check if the Windows Time Service is running and that the time and data is correct. Right click 'My Computer' and choose Manage.
    Change the role of the Windows 2003 Server so that it becomes a Terminal Server
  2. If the time between the SBS 2003 and the Windows 2003 server is not the same you will have trouble joining the server to the domain. Open the Manage Your Server Wizard from the Start Menu. Choose Add or remove a role.
    Change the role of the Windows 2003 Server so that it becomes a Terminal Server
  3. Choose next
    Change the role of the Windows 2003 Server so that it becomes a Terminal Server
  4. Choose Custom Configuration
    Change the role of the Windows 2003 Server so that it becomes a Terminal Server
  5. Choose Terminal Server as the role for this new server.
    Change the role of the Windows 2003 Server so that it becomes a Terminal Server
  6. A summary...
    Change the role of the Windows 2003 Server so that it becomes a Terminal Server
    Change the role of the Windows 2003 Server so that it becomes a Terminal Server
  7. Your server will be rebooted and it is up again you will see the below window and click next.
    Change the role of the Windows 2003 Server so that it becomes a Terminal Server
  8. This window informs you that there was no Terminal Services License Server found. Don't worry, we will do that later in this document.
    Change the role of the Windows 2003 Server so that it becomes a Terminal Server

Join the Terminal Server to your SBS 2003 network

  1. In the previous part of this article we have created a server account and a special domain administrator account. Those two are used to join your Terminal Server to the network but before we will do that we will need to add the server address to the trusted zones in Internet Explorer.
    Join the Terminal Server to your SBS 2003 network
  2. After you have the above start internet explorer and browse to http://yourservername/connectcomputer. Click Connect to the network now.
    Join the Terminal Server to your SBS 2003 network
  3. Use the domain administrator account you previously created.
    Join the Terminal Server to your SBS 2003 network
  4. Choose the server name you previously created.
    Join the Terminal Server to your SBS 2003 network
  5. Click Finish
    Join the Terminal Server to your SBS 2003 network

Configure Terminal Server licensing on your SBS 2003

For me it was not clear if you should install Terminal Server licensing on the SBS 2003 server or on the Terminal Server it self. After some discussions with other MVP's and reading some documents the conclusion is that you must install Licensing on your SBS 2003 server. Here is how we do that:

  1. Open add/remove programs from the Control Panel.
    Configure Terminal Server licensing on your SBS 2003
  2. Check Terminal Server Licensing. You will need the first CD from your SBS 2003 media.
    Configure Terminal Server licensing on your SBS 2003
  3. Accept the default settings
    Configure Terminal Server licensing on your SBS 2003
  4. Click Finish
    Configure Terminal Server licensing on your SBS 2003

Activating and adding licenses to the License Server

  1. Open Terminal Server Licensing from the Administrative Tools.
    Activating and adding licenses to the License Server
  2. You see that is a little red cross and that means we need to activate the server first. Right click the node on the right side of the page and choose Activate Server.
    Activating and adding licenses to the License Server
  3. Click next
    Activating and adding licenses to the License Server
  4. Accept the default settings and click next.
    Activating and adding licenses to the License Server
  5. Fill in your name etc...
    Activating and adding licenses to the License Server
  6. Fill in the rest...
    Activating and adding licenses to the License Server
  7. Click next to activate the Licensing Server.
    Activating and adding licenses to the License Server
  8. The CAL installation wizard starts.
    Activating and adding licenses to the License Server
  9. This depends on how you purchased your license. In our case it is an Open License.
    Activating and adding licenses to the License Server
  10. Fill in the Agreement Number. This can be found on the letter you received from Microsoft.
    Activating and adding licenses to the License Server

Redirect My Document folders to the SBS 2003 server

You don't want users that logon to the terminal server to store documents on the Terminal Server. Instead those documents should be stored on the SBS server where they can be included in a daily backup.

Here is how you do that:

  1. Start the SBS Server Manager and choose Backup.
    Redirect My Document folders to the SBS 2003 server
  2. Choose 'Configure My Documents Redirection'
    Redirect My Document folders to the SBS 2003 server
  3. Choose to redirect the folders to the default users folder on the Small Business Server.
    Redirect My Document folders to the SBS 2003 server

Install client applications on the Terminal Server

If you want to install Outlook 2003 that is included with SBS 2003 follow the instructions below.

  1. Logon to the Terminal Server with the special Domain Admin account you created and browse to \\sbsserver\ClientApps\outlook2003 and run setup.exe.
    Install client applications on the Terminal Server
  2. Fill in your name and organization.
    Install client applications on the Terminal Server
  3. Choose the location for your installation.
    Install client applications on the Terminal Server
  4. Choose the components you want to install.
    Install client applications on the Terminal Server
  5. Click install.
    Install client applications on the Terminal Server
  6. Click finish
    Install client applications on the Terminal Server
  7. Now something special happens that does not happen on a normal installation. A routine is run to make it possible to use Outlook in Terminal Server mode!
    Install client applications on the Terminal Server
  8. You see a warning that you should not click the buttons before the installation has finished. When everything has been installed click Finish.
    Install client applications on the Terminal Server

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