Windows Terminal Server 2003 intermittent hesitation with new Dell PC running XP Pro SP2 with Dell wireless b/g USB adapter. After much investigation, discover other wireless devices are using 802.11b while this one appears to be the only one running 802.11g to communicate with LinkSys router supporting both protocols. Manually set NIC to b and performance is much better. Further test by running a standard Cat5 patch cable and discover that not only has the trouble been eliminated, but everything is really-really fast!

Moral to the story: wireless networking still hasn't earned the right to be called a solid bussiness network solution

while researching the slow response issue, these documents brought enlightment:
When you use the Terminal Server client in Windows XP, screen updates may be delayed?

Microsoft Terminal Services Questions

When you run Microsoft Excel 97, 2000, or Microsoft Internet Explorer 4.0 on a Terminal Server client, you may experience very slow response when you scroll.

Can Logon access to a Terminal server be recorded in the event log or a log file easily?

The simple answer is to turn off all the fluff on your remote connections. Disable hardware acceleration, sounds, animation and smooth scrolling. In your RDP client, disable all the options under experience tab as well as the sound. I also removed all client mappings for printers and stuff just to be safe. Good luck!