A Terminal Server can be put in two modes:

execute mode: this is the default mode. In this mode, users can log in the TS and run applications.

install mode: putting a server in this mode will notify the TS of changes in the system when installing software. This is important, because otherwise software would fail to properly get installed, and there would be all kinds of ugliness going on.

In Windows 2003, a server should automatically be put in to install mode if your installation software has setup, or install in their file name. In Windows 2000, you have to put the server in the correct mode, by installing software using Add/remove programs in the Windows control panel. Note that in Win  ...