"I'm not sure I'm on the same page as you. If you have one virtual 2K3 Terminal server then everyone could just use their exisiting workstation and the VMware View client to access that Terminal Server. "
At present we don't have terminal server licences, which is a costly option for us, being a small business. I'm trying to think of alternatives.
For example having virtual workstations talk to the virtual server, lets us avoid terminal server licences. Each physical workstation can legally RDP into the virtual workstation using the free RDP licence.
Looking at Ted's great info, I see keeping all the virtual machines together allows them to communicate far faster and efficiently than they do currently over the 100 Mbit LAN
What VMware product is needed ?
1x Virtual Win2k3 server
10x Virtial PC's running Win XP
Physical workstation #1 RDP's into VirtialPC #1 and so on....