Performance problems when running VS 2005 RC2 terminal server

[birenharia]

Hi,

We are running a Virtual server 2005 Rc2 Sp1 on windows 2003 Enterprise
edition.

On the VS 2005, we are running a terminal server with 3GB of allocated memory.

I have noticed that at certain times, the CPU spikes to 100% or the system
just hangs [for a while] - that is when we have around 4 users using the TS.



It seems that the Avg Disk Queue Length also spikes up with the CPU spike
[I have turned on perfmon].

The Virtual Server VHDD is running from RAID 5.

Could something have not been configured properly on TS?

The server is a HP DL380 G5 (just bought it on March 2009) with 8GB of RAM.

Thanks