Server 2008 SBS - Outlook Client Issues

One of my clients are using MS Server 2008 SBS with two thin clients, both using outlook 2007, the system has been working for six months without issues. Windows has released updates to the server, and now I receive a message / login screen that keeps asking me to login to remote.*. Why is this? I have searched forums and other technical website and all I get is that outlook client is not supported on the same server as exchange resides!

David Wood - Head Engineer