Load balancing terminal servers w/o Session Directory

We do have two terminal services servers. We are using thin clients that rdp into these servers. Both are Win2k3 Enterprise so Session Directory is an option. However from what I've read this should still be working without Session Directory enabled. From my understanding that is why that option is in the msrdp persistence profile.

 

 

I ran across the timeout option in the msrdp persistence profile. Could that be causing this. It is simple but you never know. It was set to 300 seconds. We have our server set to 3 hours for disconnected sessions. Would it be correct to set that timeout to 3 hours?