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Terminal Server 2008 with Remote Applications poor performance

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I have several users who do not have most applications installed locally.  The majority of their applications are remote apps. We have folder redirection in place to save the files on the file server in the same VMware stack. The terminal server is virtualized on a VMware 5.0 stack. The file server is a SBS 2011 and the Terminal server is 2008. When the users open remote apps or files there is a significant lag between the time they double click on the file to open and the time the file actually opens. Yet when they remotely RDP to the server the files open very fast. I discovered that file synchronization between the desktop and the Terminal Server was enabled. Any suggestions to improve performance would be appreciated.


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