Unable to open Works documents in Word 2010 on vWorkspace 7.2MR1

Hi,

I have a frustrating problem. I have just deployed our first vWorkspace customer. The client is an employment agency and sometimes receives resumes in MS Works .WPS format. They have a problem when opening these in Office 2010. They get the following error:

There is not enough memory or disk space to convert this document

The same error occurs if I try to save a document in Works format.

The environment is the following:

Windows 2008R2 domain

Windows 2008R2 SP1 Connection Broker/Terminal server.

vWorkspace 7.2 MR1

Office 2010 SP1 32 bit

Windows 7 clients with 7.2 MR1 connector

This is a pure terminal server solution, with no VDI. Users connect to a published desktop.

After eliminating various things such as permissions, user rights, colour depth, resolution, graphics acceleration, EOP Xtream, client mapped devices, printers, etc I have found the following. Regardless of any other factors, if a user logs in using MSTSC.EXE they can open and save works documents. If they log in using vWorkspace they get the error. This is the same whether the user logs in using AppPortal, the WI/SG or by just using PNTSC to make a direct connection to the server. Even if a user logs on using PNTSC, then makes a nested connection to the same server using MSTSC they can open the document in the nested MSTSC session, but not in the vWorkspace session.

Any ideas?