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TS performance lags after upgrade to Office XP

Why would my users connected to a Windows 2000 server running Terminal Services experience a significant performance degradation (graphics painting) after being upgraded from Office 97 to Office XP?
I don't use Office XP, but I've heard a lot of anecdotal evidence that it does not get along well with Terminal Services because Outlook and Word both use so much memory. You might want to look at this chat transcript or the Microsoft suggestions for tuning.

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