Try this solution. It worked well for us.
When you use the default Terminal Services configuration, you cannot copy and paste files between the Terminal Services client and the Terminal server. However, when you use the Rdpclip (Rdpclip.exe) utility that is included in the Windows 2000 Server Resource Kit, you can copy and paste files between the Terminal Services client and the Terminal server.
On the terminal server, follow these steps:
1. Install the Windows 2000 Server Resource Kit
2. Download the Rdpclip hotfix from Microsoft and then install it
3. Start Microsoft Windows Explorer, and then locate the Resource Kit folder
4. Right-click each of the following files, click Properties , and then click the
version tab to confirm the file version:
C:\Program Files\Resource Kit\Rdpclip.exe - 5.0.2205.1
C:\Program Files\Resource Kit\Fxfr.dll - 5.0.2064.1
C:\Program Files\Resource Kit\Rdpdr.dll - 5.0.2205.1
5. Start Registry Editor (Regedt32.exe)
6. Locate and click the following registry key:
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Terminal Server\AddIns\Clip Redirector
7. Double-click the Name value, and then type fxrdpclp in the Value data box to replace "rdpclip."
8. Locate and click the following registry key:
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Terminal Server\Wds\rdpwd
9. Double-click the Startup Programs value, and then type fxrdpclp in the Value data box to replace "rdpclip."
10. Rename the Rdpclip.exe file in the Resource Kit folder to "Fxrdpclp.exe"
11. Copy both the Fxrdpclp.exe file and the Fxfr.dll file that are located in the Resource Kit folder to the Windows_folder \System32 folder
12. Restart the Terminal server
On terminal services clients, follow these steps:
1. Copy the Fxfr.dll file from the Resource Kit folder to the Program Files\Terminal Services Client folder
2. Rename the Rdpdr.dll file in the Program Files\Terminal Services Client folder to "Rdpdr.pss"
3. Copy the Rdpdr.dll file in the Resource Kit folder to the Program Files\Terminal Services Client folder
4. Start a Terminal Services client session with the updated Terminal server
5. Right-click a file in the Terminal Services dialog box and click Copy
6. Right-click a location on the desktop of the Terminal Services client and click Paste
NOTE : These procedures do not work with Terminal Services Advanced Client (TSAC).