2003 Terminal Service Print spooler error and Windows installer?

Hi

I have a windows server 2003 standard edition SP3 32bits with Terminal
services. We use terminal services to service 50 users that require SAP. In
the past week the print spooler consistently stops responding and the service
must be started manually.

I have also noticed when installing windows updates they are taking a very
long time to install in some cases up to 40 min. I have cleaned windows
installer and updated windows installer but this has not help the delay in
installing programs. The Server is an IBM duel CPU Itanium 2.4 GHz with RAID
5 20 GB free on C: drive. I have been searching the new for answers but have
had no luck.

Can any one help me with a fix or an explanation?

Thank you.