Resolved Server 2008 - AD - Terminal Services

I have a server to which I limit remote logins to a specific AD group. Users in that group are able to log in fine unless they are new. In that case, they are unable to create their own home directory without admin privileges. My workaround is to put them in the admin group until they log in and then removed them. That is really an unacceptable, risky admin intensive method. Am I doing something wrong in the way I am setting things up or is this a Microsoft "feature?" TIA.

 

It turns out this is a Microsoft "feature." The purpose for which I have no clue.