The connection is not using advanced RemoteFX RemoteApp graphics

Hey
I have some HP WS460G8 + Nvidia Grid K1 GPU + Windows 2012 R2 (fully patched)
We would like to use the servers with RDS + RemoteFX.
When a user logs on to the server we get: "The connection is not using advanced RemoteFX RemoteApp graphics" in the eventlog.
Client running Windows 8.1.
Any ideas?
Michael

TP - thanks, it's very useful to know that full desktop sessions won't use RemoteFX graphics.
In my case, I have tested with Win 8 (fully patched), imported the Remote App feed from the 2012 R2 server.  IE is a published app, and when I try to play a youtube or vimeo video it's very glitchy.
The Win 8 and RDS server are on the same cabled LAN. I see event 257 indicating Remote FX is in use.  The following network characteristics have been detected for tunnel 8; Link latency : 1 milliseconds and Bandwidth: 93090 kbps.
But video play is glitchy. Even though this issue might be related to Michael's post, I don't want to side-track the thread that he started.  I have a thread open for my issue
here. I don't have the policy configured that you pointed out.  Would it be relevant to my issue?

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