Office 2010 terrible on terminal server

Our client has Office 2010 Pro Plus installed on a terminal server running Server 2008 R2 Enterprise.
The terminal server is a VMware virtual server running from a HP SAN.
Office performance and usability is quite simply terrible! Office files from network shares and Outlook attachments can be slow to open (30 seconds), and sometimes show errors such as the following.
I have ensured that "Ignore other applications that use DDE" in Excel options is ticked.
Currently the 32-bit edition of Office is installed, but the same issues were experiences using the 64-bit edition.
Does anyone have any ideas on what could be causing this grief? Could the issue be with Windows or with VMware?

Hi,
For the error above, some also reported that uncheck "Run this program as an administrator" will fix it. Just right click on the shortcut of Microsoft Office application>Properties>Compatibility, then uncheck the option.
Regarding to the issue of poor performance of Office on Terminal server, check the CPU/Memory usage in Task Manager. Try to close any other programs and try again.
You might also want to check your deployment/ Terminal server network setup. For how to deploy Office 2010 in a Remote Desktop Services environment, please refer to: 
http://technet.microsoft.com/en-us/library/cc179055(v=office.14).aspx 
Also this link might be helpful:
http://blogs.technet.com/b/askperf/archive/2012/03/06/performance-issues-due-to-inactive-terminal-server-ports.aspx
Regards,
Ethan Hua
TechNet Community Support
It's recommended to download and install
Configuration Analyzer Tool (OffCAT), which is developed by Microsoft Support teams. Once the tool is installed, you can run it at any time to scan for hundreds of known issues in Office
programs.

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