To modify Terminal Server`s displaying of hard errors on the console, you need to modify the ErrorMode value in this registry key:
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Windows
The three possible values for ErrorMode are 0, 1, and 2. 0 is the default and displays all error messages. 1 suppresses only system errors, but displays all application-generated errors.
2 suppresses all hard errors, writing them only to the system event log.
You will most likely want to set this to 2 after you have installed all of your applications.
This comes from http://www.jsiinc.com/tip1400/rh1411.htm
When a Terminal Server client abnormally (power failure, network failure, etc..) loses their connection to the Terminal Server, their session may not be marked as disconnected. When the client logs on again, a new session is created, leaving the origonal session active, consuming resources.To fix this problem, apply the latest Terminal Server Service Pack. Then use Regedt32 to navigate to:
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Terminal Server
On the Edit menu, Add Value name KeepAliveEnable as a type REG_DWORD. Set the data value to 1. The default is 0.
Use the Connection Configuration tool to double-click rdp-tcp, and click Advanced.
Locate the On a broken or timed-out connection, connect action the session line. Then:Clear the Inherit User Config check box.
Check Disconnect.
Press OK.With these settings, KeepAliveEnable will use Carrier Loss Detection,
polling each client every (KeepAvileInterval / #sessions), to disconnect the client session.
On an NT 4.0 Terminal server it is suggested to set the paging file to have the same initial and maximum size and make it at least 2 and 1/2 times conventional memory installed (cant be any more than 4 GB)
So for example, if you had 256 kb of memory you would set your paging file to be at least 740K for the minimum and maximum. It is also suggested that you set your paging file to be on a separate disk drive from your root drive.
For Windows 2000 Terminal Services it is reccomended that you set the initial size at 1 and 1/2 times installed ram and the maximum to be no more than 3 times installed ram.