Windows 2003 running Terminal Services for 10 users

I have been trying to:

1. Have limited users open Google Desktop Search to index their files
but it gives me a generic non descript error that says it can't do it.
The only way I have been able to give them the ability to index is to
give them admin privledges (that ain't gonna happen). I have specified
the path to the directory to store the index info and ensured that the
user has full privledges to the directory, but no go.

2. Have two users with admin privledges open Google Desktop Search at
the same time. The first can do it and it works fine, the second user
can double click on the Google Desktop Search icon for hours on end but
it does not open. It appears that only one person at one time can have
it open in a session on the same machine.

I'm almost to the point of believing that Google Desktop Search does
not work with Terminal Services. I don't have the $10,000 Google wants
for tech support.

Any shared experiences or help appreciated.