When you are connected to another computer by using Remote Desktop Connection and try to paste copied information between the local computer and the remote computer, the Paste command may be unavailable. Also, if you try to paste the copied information, you may receive the following error message:
Windows Remote Desktop Client
Cannot copy file: Cannot read from the source file or disk.
Mac Remote Desktop Client
The local computer is low on memory. Close some programs, and then connect to the remote computer again.
This issue may occur if drive redirection is not enabled on the Remote Desktop client computer or on the Windows NT 4.0 or Windows 2000 Terminal Services server computer.
To resolve this issue if you are connecting to a Windows XP or Windows Server 2003 Remote Desktop host computer, enable drive redirection on the Remote Desktop client computer. For additional information about how to do this, click the following article number to view the article in the Microsoft Knowledge Base:
313292 How to gain access to local files in a remote desktop session to a Windows XP-based or to a Windows Server 2003-based host computerNote Automatic drive mapping is not available when you connect to a terminal server that is running Windows 2000 or earlier. There are several methods available to allow you to use client-side drive redirection when you are connecting to a terminal server running Windows 2000 or earlier.For additional information, click the following article number to view the article in the Microsoft Knowledge Base:
272519 How to redirect a client drive in Terminal Services
This behavior is by design.