How many simultaneous users per Terminal server

I have an upcoming (Accounting) application where I was going to use a Terminal Server with 5 user licenses.
Then the client asked about growth possibilities.  First he wanted to know about adding 10 more remote users, then he asked about 20 users.

My question is how many users can I realistically expect one Terminal Services Server to handle?
When should I consider a second?
When should I abandon Terminal services in favor of something like Citrix?
Who is Participating?
Toni UranjekConsultant/TrainerCommented:

How much RAM does your server have? I belive that if you have at least 4 GB server might handle up to 40 users. I have not seen problems on TS under this number of users, but this depends on memory consumption of programs that users are using.


JimPletcherAuthor Commented:
Server has 4GB RAM and one Dual-Core microprocessor.
I was thinking of two Dual-Core microprocessors, but I have no idea what the memory consumption will be per user (no experience with the application)
Toni UranjekConsultant/TrainerCommented:
Which OS will you use? Windows Server 2003 Standard or Enterprise? If it's Standard Edition you will use, 4 GB is max memory supported and you can buy another CPU. But it's really hard to say whether or not you would benefit from additional CPU.
JimPletcherAuthor Commented:
Using W2k3 Standard.
The Microsoft paga about scaling Terminal SAervers "seems" to indicate that an additional Dual-Core microprocessor would maximize the possible users on a 4GB machine.
The BIG unknown here is the application.  It looks like I'll have to "learn by doing" in this case.
Toni UranjekConsultant/TrainerCommented:
I will repeat, since you already have max memory, go for second CPU. I'm sure that your server will easily accomodate at least 30-35 users and more if application does not consume too much memory. Check memory consumption for single user immediately after you put server in production.
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