One of our Support heroes tracked this one done the other week. We had a customer who was publishing Office 2010 as a sequenced app through Session Host (Terminal Server), and users would use Office to open apps on a SharePoint server. When they closed the Office app the session did not terminate. It turns out that opening files on a SharePoint server spawns msosync.exe, which stays runnig after the Office app has gone, and so the session doesn't exit!

It turns out that this is a known issue with how App-V handles child processes and fortunately there's an easy workaround!

Edit the OSD file and add the following line to the VIRTUALENV element:

TERMINATECHILDREN="TRUE"

See Microsoft KB article 931589 for more information.