Unusually high network latency on terminal server

I have 60 users on a virtual terminal server running at about 80% memory utilization and 10% cpu utilization. One application that we use on the server is exceptionally sensitive to network latency and we recently started getting complaints from users using the application on this TS. 

On any other server in my network if I run a tracert to a remote server I get an average time of 5 ms. On the terminal server I get an average time of 70 ms. We've turned on Receive Side Scaling (RSS) both in the OS and in the hyper-visor but this has made no difference. 

Any suggestions would be appreciated. 

Tracert performed on terminal server:

Tracing route to 10.141.10.1
over a maximum of 30 hops:

  1   136 ms   124 ms    78 ms  10.150.10.2
  2   111 ms    69 ms    63 ms  10.150.30.5
  3    64 ms    64 ms    86 ms  10.100.1.4
  4   114 ms    90 ms   111 ms  10.141.10.1

Trace complete.

Server: Windows 2008 R2