Changing default user profile folder on Server 2008 RDS

If you want to move the default user profile folder on Server 2008 to a location other than the C: drive, WITHOUT redirecting the folders via GPO, do the following on the RDS in question:

Open up regedit, and navigate to: HKLM\SOFTWARE\Microsoft\WindowsNT\CurrentVersion\ProfileList

Edit the ProfilesDirectory key to point to another local drive, and any new profiles created thereafter will be inside that directory.

NOTE: Make sure to create the directory first if it doesn't exist and set up proper matching permissions (check the C:\Users folder for reference.)