There are a couple a option to check out.
First, you have the "Application Compatibility Scripts". They are specificly written to support applictaions not 100% suitable for a Terminal Envirioment, like Word. Run this script for Office 97 or 2000 and it will ask you to assign a "ROOT" drive for the user e.g. Z:. The TS makes a new directory (e.g. c:\users\%username%) each time a new user logs on. You can use the "ROOT" drive to assign Word it's user enviroment. Example of the CHKRoot.cmd in the c:\wtsrv\Application Compatibility Scripts directory
Echo REM > RootDrv2.Cmd
Echo REM Before running this application compatibility script, you must >> RootDrv2.Cmd
Echo REM designate a Drive Letter for Terminal Server to use for a Home directory drive.>> RootDrv2.Cmd
Echo REM Make Sure this drive letter is not being used by anything else on the system >> RootDrv2.Cmd
Echo REM Update the "Set RootDrive" statement at the end of >> RootDrv2.Cmd
Echo REM this file to indicate the desired drive letter. If you have >> RootDrv2.Cmd
Echo REM no preference, the drive W: is suggested. For example: >> RootDrv2.Cmd
Echo REM >> RootDrv2.Cmd
Echo REM Set RootDrive=W: >> RootDrv2.Cmd
Echo REM >> RootDrv2.Cmd
Echo REM Note: Make sure there are no spaces after the drive letter and colon. >> RootDrv2.Cmd
Echo REM >> RootDrv2.Cmd
Echo REM When you have completed this task, save this file and exit >> RootDrv2.Cmd
Echo REM NotePad to continue running the application compatibility script. >> RootDrv2.Cmd
Echo REM >> RootDrv2.Cmd
Echo. >> RootDrv2.Cmd
Echo Set RootDrive=>> RootDrv2.Cmd
Echo. >> RootDrv2.Cmd
NotePad RootDrv2.Cmd
Option 2:
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Just make a login script to connect a "user"-drive e.g. Z: to a directory or share on the network.
place this script in de c:\wtsrv\system32\Repl\script\Import directory and assign in de usermanager for domains this script to each user.
Try to experiment with connecting to share and make a substitude wiyhin this share. This is a powerfull tool to limit te shared folders on your servers