Windows 2003 doesn't support pass-through authentication (taking domain login credentials supplied when the user logs onto the domain from their fat client). That, unfortunately, is the most secure way of accomplishing single-sign on access to the Terminal Server. Your other option with Win2K3 Terminal Services is to store the remote desktop connections with the user's security credentials stored in it, updating those credentials as required. (Adopting MetaFrame XP is another option, but that's overkill if this is the only functionality you're missing.)
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