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Turns out I solved my own problem. Looks to be a flash problem, not a WYSE problem. I had to add the following registry key:
[HKEY_LOCAL_MACHINESOFTWAREWow6432NodeMicrosoftWindows NTCurrentVersionDrivers32Terminal ServerRDP]
New String called “wavemapper” value “msacm32.drv” (don’t use quotes).
Hope this helps someone.
-Again Windows 2003 Server 64-bit Terminal Server, Flash Player, RDP Audio