Start menu folder redirection under 2008 Terminal Services

OK, a strange problem and wonder if anyone may have any ideas?

I have a redirected start menu..

In the start menu any lnk's (shortcuts) at the root do not work, e.g. if I have redirected then to a folder \\server\menus\

and have a link file to 'My Computer', a folder 'testFolder' and another copy of the link file to 'My Computer' inside.

User logs on, menu redirects and appears fine and the when you click on the menu select progams, My Computer the menu just dissappears and nothing opens up, however if I do the same and click on the testfolder in programs then My Computer it works???

Any Ideas?

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S Abraham