When installing the Terminal Services role on a 2008 member server in a SBS 2008 domain, you may run into the following error:

Quote

Attempt to configure Terminal Server failed with the error code 0x8004005.
Error HRESULT E_FAIL has been returned from a call to a COM component.

Cause

The problem surfaces when the 2008 member server was added to the domain, it was misplaced in the SBSComputers OU, rather than the SBSServers OU. As a result, a certain client group policy, which is linked with the SBSComputers OU, interferes with the installation of Terminal Services.

Resolution

To solve this problem, follow these steps:

1. Uninstall the Terminal Services role (entirely, including all sub roles).
2. In Active Directory, move the server to the correct OU (SBSServers).
3. Reinstall the Terminal Services role. The installation should succeed.
4. Optional: if required, reinstall any applications that run on the Terminal Server.