Just looking at the hardware & platforms docs today @ macola for another client, I see that macola specifically states NOT to have terminal services running for client access on the SQL box. The print to screen thing may be solved by downloading the 01232004 print update from downloads, initializing reptpass & printdft files. If you initialize printdft, then users must reselect their printers the next time they run that job, but it allows a clean reconnect to the printer.
At one site recently, I had a print to screen problem on 1 win2k WS, novell 5.1 after upgrading to 7.6.200. Couldn't fix it no matter what. Got a new xp WS, could print to screen. User's profile changed on the domain in preparation to migrate to sql. Print to screen broke again. Updated to sql macola on win2003 server, still no print to screen on this lone WS. Reinstalled the OS & apps on this machine, it works fine now. The user may be doing something odd on the WS w/screen saver, weather bug, etc. The user also runs an older version of lotus, which I have heard rumors causes problems. It also sounds like you have data issues if there are 99 rpt files & tmp files. Once you get TS users off, I'd do a major cleanup.