For roaming profiles, we create a system variable on each server (RProfile=\\share\profiles\%username%) and the each user has an entry in their terminal server config (%RProfile%).
This used to work fine in windows 2003. Now with Windows 2008, instead of creating a folder for each user, it creates a folder "%username%.V2". It doesn't resolve the variable %username% to actual username.
Though GPO is another option, but we have limitations to implement that
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