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kstet

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Windows 2003 Server - Domain Controller and Terminal Server - Loopback Processing - Bad Idea?

I have a Windows 2003 server with Terminal Services installed.  It is also a Domain controller.
There is another DC (part of this domain) in another location (users do not access).  This second server is really just for AD backup.  

First question - off the bat - is it a bad idea to have a DC that is also a TS - and why?
Will I experience any issues because it is a TS and a DC?

Second - I am thinking of applying Loopback processing to the Server.  
Because the server is part of the Domain Controllers OU - and therefore part of the Default Domain Controllers Policy - do I turn on GP Loopback Processing - in the Defaualt Domain Controllers Policy?
Or do I create a second policy and apply it to the Domain Controllers OU?
Or do I move the server out of the Domain Controllers OU to a new OU and then apply the policy that has the Loopback Processing enabled?  (I'm thinking no on this last one - as I do not want to lose any of the Default Domain Controllers Policy settings).
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andrew_aj1
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kstet, can we get an update please.