I have a Windows 2003 terminal server. It is running ZCM ZENworks Adaptive Agent Version:

All bundles assigned to users fail with the error "Failed to process launch in user space"

E.g. a simple Explorer launch bundle:
Event Type: Warning
Event Source: Novell.Zenworks.Logger
Event Category: None
Event ID: 0
Date: 23-1-2012
Time: 22:26:07
User: N/A
Computer: TS01
Category: ActionManager
ActionMan.ActionContinueOnFailure: The action Launch Action (ID:) failed due to the reason : Failed to process launch in user space "C:\WINDOWS\explorer.exe "., however the action is set to continue on failure.

This particular one has a trailing space, but others do not and also fail.

The server was running fine with the ZDM 7 agents.
Also the administrator accounts don't seme to be affected.

Help and advice is welcome, as users want to use this server.