This HowTo covers how to copy and paste the files/text/graphics (Clipboard) content between remote desktop session and local computer in Windows XP.
Follow the following instruction in both local and remote computers.
Go to Start->Control Panel->Administrative Tools->Services. Enable and start the following services in the order shown below:
1. Network DDE DSDM 2. Network DDE 3. ClipBook
If you want to see the clipboard action in live:
You can go to Start->Run and type clipbrd and click OK to run clip board viewer. You will be shown current clipboard objects in this viewer.
Now you can use standard copy/paste menu options of the applications in both the computers to exchange the data.