Terminal server/ Office CALS

Hey Guys...
I have a couple terminal server and licensing questions....

1.  If we install Office 2003 on the terminal server and the client computers that are running terminal server already have Office 2003 installed, do we need CALS for Office 2003 on the terminal server?

Also if the work station that is connecting to the terminal server is running Office 2007, Do, I need another office 2003 license or does it work like a downgrade.

Any help would be greatly appreciated

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