Tip 0728 discusses the 2048 open file per connection limit.
With Sp4, you can allow each terminal server client to maintain a separate virtual circuit.
Use regedt32 to navigate to:
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\Rdr\Parameters
Add Value name MultipleUsersOnConnection as a type REG_DWORD entry and set the data value to 0.
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