Enhanced Application Compatibility
The XP/VS Terminal Server feature "enable application compatibility mode" is the same feature as the Microsoft Terminal Server feature "Application compatibility mode".
It can be enabled in XP/VS Admin under the Options menu -> "enable application compatibility
If this feature is enabled XP/VS Terminal Server behaves exactly like a Microsoft Terminal Server in "Application Compatibility Mode".
Further Details about this feature are available here & here.application, Application Compatibility Mode, compatibility, enable, enhanced, Enhanced Application Compatibility, mode