JSI Tip 3910. Guest profiles are not copied or saved in Windows 2000 Terminal Server?

If you log on to Terminal Server with a roaming profile and you are a member of the Guests or Domain Guests group, your roaming profile is not used and you are considered to be a new user.

When you log off a Terminal Server, your local profile is deleted from the Terminal Server, if you are a member of the Guests or Domain Guests group.

The above behavior is by design.

The Application Event log may contain:

Event ID: 1000 
Source: Userenv 
NT AUTHORITY\SYSTEM 
%ComputerName% 
Windows cannot create profile directory \\servername\users\username. 
You will be logged on with a local profile only. Changes to the profile will not be propagated to the server.
Contact your network administrator. 
DETAIL - The network name cannot be found. 

Event ID: 1000 
Source: Userenv 
NT AUTHORITY\SYSTEM
%ComputerName% 
Windows cannot find the local profile and is logging you on with a 
temporary profile. Changes you make to this profile will be lost when you log off.

The following entry may be logged in the Userenv.log file:

USERENV(56c.550) 15:25:41:171 RestoreUserProfile: User is a Guest

To resolve the issue, remove the account from the local Guests group on the Terminal Server and from the Domain Guests group in the domain.