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FAQ 147: Use with Remote Desktop Services (Terminal Services)Category: Initial setup
When used with Remote Desktop Services (RDS) on Windows Server 2008 R2 (and later) you should Enable IP virtualization, Per session.
When used with Windows MultiPoint Server 2011 you should Assign a unique IP to each station.
...with either configuration, all DNS Redirector features are then supported.
With previous server versions, all terminal server users share the IP of the server itself.
Thus DNS Redirector is unable to track each client by it's own/unique IP address.
For this reason, RedirectIP= (and associated settings) cannot not be used.
The BlockedIP= setting may be used, but BypassBlockFile= cannot.