I have a clean windows server 2008 x64 terminal server with the latest service pack and updates. I installed adobe reader 126.96.36.199 as an administrator with the terminal server in application install mode. I tested the application as administrator it works fine.
When users that are not an administrator run the application on the terminal server they recieved:
Program: C:\Program Files (x86)\Adobe\Reader\9.0\Reader\AcroRd32.exe
This application has requested the Runtime to terminate in an unusual way. Please contact the application's support team for more information.
To fix this error I had to change the compatability of adobe reader to Windows XP SP2. This is really weird as I had adobe installed on other terminal servers, it was just an older version and these did not have the issue.