Windows NT multiplexes all file requests to a single server over one virtual circuit. The SMB (Server Message Block) reserves 11 bits for the file handle, resulting in a maximum of 2048 file handles per connection.
This is not normally a problem, but Windows NT Terminal Server's use of the same SMB structure. When a Windows NT Terminal Server connects to a network share, it supplies the servers credentials, which allows multiple Workstations using the Terminal Server to share the virtual circuit, but still have their own security relected. If this network share is for a file-intensive application, the 2048 open file limit may be reached.
If 200 Windows NT Terminal Server users were simultaneously using the share, they would be limited to 10 open files per user. The only real solution is to add
more Windows NT Terminal Servers.