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optimal config for terminal server running on VMWARE on 2003 Enterprise

Microsoft Terminal Server Shop - approx 80 users.
Just starting to get into VMWare.
Have Dell 1950 w/ dual quad CPU's running 2003 Enterprise w/8 gigs.
Normally I would turn on terminal server servies, etc. and run everyone just on the base OS.

However, not sure if that will utilizie all memory effectively.
I'm also thinking of virtualizing  2 or 3 2003 servers under primary server each running in it's own 'space' with own memory each w/approx 30 users.  Of course, backing up each virtual session and having them ready as a hot spare on backup box is also attractive, etc.

Would that be effective and/or a bad idea?  Any suggestions.
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running 8 gig Windows 2003 requires Enterprise version which allows for up to 4 virtualize copies