When you perform the subject action, the Terminal Services Session Directory service DOES NOT keep track of sessions on terminal servers and DOES NOT reconnect users to existing sessions.
When you attempt to add a terminal server to the Session Directory Computers local group, you receive:
Information returned from the object picker for object <Computer Name< was incomplete. The object will not be processed.
This behavior occurs because the Windows Server 2003 Terminal Services Session Directory service requires that all terminal servers that use the Session Directory service must be added to the Session Directory Computers local group, but you cannot add computer accounts to groups in Windows NT 4.0.
To resolve this issue:
2. Open a CMD.EXE Window on the Windows Server 2003 SP1 session directory server.
3. Type the following command and press Enter:
REG ADD "HKLM\System\CurrentControlSet\Services\TSSDIS\Parameters" /V SDOnNT4Domain / T REG_DWORD /F /D 1
4. Shutdown and restart the Windows Server 2003 SP1 computer.