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Active Controls - Internet Explorer on Terminal Server

I have a new Windows 2003 Terminal Server. Domain users connect via thin client to RDP desktop. When they use Internet Explorer 7.0 they are not prompted to install Active controls. Tried to log in as domain user and install Adobe flash player and get an access denied copying download.dll and other files. How can I "loosen up" IE7 so that users can activate necessary controls?
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Solution: Active Controls - Internet Explorer on Terminal Server

I know the adobe link oesnt give much background but I found this on another forum

http://www.brianmadden.com/forum/topic/93831

And other users installed the fix with success.

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