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User Policy or Server Policy for users connecting to RDP server?

Question: When a user logs into a terminal server, is the User policy priority or the assign Server policy to the server?  

Situation:  We have a terminal server with a variety of users who log into it.  Some need a more restricted policy applied than other users.   I've setup the restricted user's with a policy but it doesn't seem to apply to them when they log into the terminal server. 



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