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Slow Virtual TS on Hyper-V

I currently have a virtual terminal server running on a 2008 Server with Hyper-V.  The TS is running 2008 Server.  There are about 30 thin clients that connect to this TS, all in a junior high school, and not necessarily all are used.  This virtual TS has two processors and 8GB RAM.  The users are complaining about how slow this machine is and how it frequently locks up when trying to do more than one task, such as Word and IE at the same time.

Does anybody have any suggestions what I can do to make this server work better for these users?  Do I need to add more processors, more memory?
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Cláudio Rodrigues
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Very nice information.  Let us digest this and we may have more questions!
I'm using terminal services on VMs and having a little different problem.

Once a user connects all seems to be fine and dandy.  The only problem I'm having is that sometimes the initial connection to the server is slow.  I have one person who connects from out of state that occassionaly cannot connect at all.

I typically have no more than 2 users on the server at one time.  
server has 1 CPU with 4 cores, VM settings: 2 CPUs, 2GB memory.

Any ideas why the initial connection would be sluggish but then, once logged on, performs great?

Thanks.