Windows Server 2008: Terminal Services "an error occurred while an initial user program was starting"

"You are connected to the remote computer.  However, an error occurred while an initial user program was starting, so you are being logged off."

1. Open the following registry key:
HKLM\Software\Microsoft\Windows NT\CurrentVersion\Image File Execution Options

2. Right click on Image File Execution Options and select Permission

3. Ensure System has Full Control permission

4. Ensure SERVER\Users group has Read permission

Click OK and logon as the user. If the problem persists, check the following:

1. Locate the Registry Path: HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Winlogon. Make sure the value of Shell is explorer.exe

2. SERVER\Users group should have "Read & Execute" and "Read" permission on %windir%\explorer.exe file

3. Test turning off antivirus