Network slow, Terminal Services Fast

i am confounded by a very bizarre situation at our offices at the moment.

We run a piece of software across our network that is launched via an executable on our server. According to the publisher everything runs in RAM and not much data gets moved around. Problem is we have one machine that crawls when running this app but is fine with the local applications. Identical machines are much faster when running this specific application and run local apps at the same speed as the problem machine.

Running LANSpeedTest from the problem machine indicates that data gets moved around at roughly 1/10 of the speed of the other machines.

This to me indicates a cabling issue as all the NICs are running at the same speed, add to this the fact that the cable to the machine was recently moved and the cause seems simple.

However, just for fun we connected to Terminal Services from this machine and ran the application and the ran the LANSpeedTest and performance was excellent. Now I know with Terminal Services the work is being done by the server and screenshots and keystrokes are the only realy things that are going back and forth but I would at least expect some amount of degradation if the cable was damaged.

Am I right to be confused or is the amount of data so small in Terminal Services that poor connection speeds would not affect it?