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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The only advantage I can think of to running your Terminal Server underneath VMware is that you'll be able to move the environment to a different server (with different hardware) if something happens to the system.  From a resource standpoint, I'd advise against  running multiple servers in the host.  You're already going to be taking a bit of a performance hit because of the VM layer, but if VMWare is the only thing running on the box, then it won't be too bad.  Of course, I'm not sure that Microsoft will license your terminal if its under VM, but that's between you and microsoft.

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alpertgrpAuthor Commented:
running 8 gig Windows 2003 requires Enterprise version which allows for up to 4 virtualize copies
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