Clearing the terminal services cache folder is sometimes necessary if you have corrupt files in there. There are a number of ways to get corrupted files in the terminal services cache folder, however don’t panic because it it easy to fix. Her is an example of an error that can be fixed by the following paths Bitmap Disk Cache Failure when using remote desktop.
All you have to do is go there and delete the files.
Windows XP path to clear terminal services cache folder
c:Documents and SettingsLocal SettingsApplication DataMicrosoftTerminal ServerCache
Vista path to clear terminal services cache folder
C:UsersMitzAppDataLocalMicrosoftTerminal Server ClientCache
Windows Seven path to clear the terminal services folder
C:UserspctipsAppDataLocalMicrosoftTerminal Server ClientCache