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Report.Close() Hangs in TS Environment Only

We have an enterprise application that includes code to export Crystal Reports to PDF files in the user's own custom folder. This application works fine when running on a regular Windows PC. This same app is deployed to a Windows Server 2008 R2 Datacenter Terminal Server. When the app runs in this environment the report exports to PDF and then when attempting to free the resources by calling ReportDocument.Close() the program hangs.

1. Logging was introduced which nailed this down to the execution of ReportDocument.Close(), so it isn't custom code that is failing.

2. Crystal Runtime (13.0.2000) was uninstalled and reinstalled on the TS client without resolution.

3. The original report was quite complex, so this was replaced with a blank report with no connection to a data source, but even this blank report hangs when trying to run ReportDocument.Close()

4. It works on a range of OS's including Windows XP, 8.1, Server 2012, but not on the Terminal Server running Server 2008 R2 or 2008.

Any suggestions where to start looking? I've looked up similar posts, but these don't seem to be relevant (eg no custom UFLs)

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