When launching an application from Terminal Server 2008 do I need to specify the full path to the .exe on the webapplication object?

With 2008 and published apps you can now specify the published application name inside webnetwork.

Previously you would put something like: 
Start Program : C\:Program Files\KeePass Password Safe\KeePass.exe 
Command line arguments : C:\data\myfile.kdb 
Working Directory : c:\data\CustomerInfo 

Now you can configure all of that in the TS RemoteApp Manager program on the terminal server and then just put : 
Start Program : ||keypass 

This eliminates having to specify the full path and optional command line arguments and just have them controlled on the terminal server. 

If you need to use the wnssoclient then you will have to still provide the full path to the executable as this shortcut only works when launched from the RDP client and not from a secondary program.