We are offering some RemoteApp Terminal Services (TS) based on W2K8. One consideration is the porting of existing user local profile to roaming user profile, so that the users won't get upset of losing their IE favorite bookmarks.
Unfortunately, WinXP local profiles are V1 and W2K8 are V2 and they aren't compatible. Hence, we use Terminal Service profile that supersedes the roaming profile in TS environment. To reduce the profile loading time, we implemented loopback policy on the TS server that enable folder redirection. If folder redirection is not implemented, the local server will have to load the profiles from the network shares when the users log in and upload again when the users log out. Users with large profiles will naturally have longer loading time.
I found two very good sources that implement roaming profiles and loopback policy on TS:
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