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Windows 2003 Terminal services plan

I am planning to setup Windows 2003 server with SQL running an application which runs on the back of SQL.  The software company has advised setting up terminal services and let the ten clients connect in this way for running the sql application and probably file sharing and office.

I have little experience of Terminal services, Can anyone tell me how troublesome this type of setup is, I'm also concerned with what spec of server I would need, so any advise is appreciated.

Thanks
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Thanks