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Microsoft Outlook 2010 Error "Another version of Outlook is currently running." when clicking on a mailto link

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Our company recently upgraded from Outlook 2007 to Outlook 2010. The mailto links on an intranet work fine on local computers running Outlook 2010 but on the terminal servers, users are getting the following error:

"Another version of Outlook is currently running. Close it and try again."

I have made sure that Outlook is the default mail client.

Home & Business Click2Run has never been installed on the terminal server.

The error happens in standard as well as safe mode.


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