SBS 2003:VPN vs TS

We have an SBS Server 2003. Remote users can use the built-in VPN which is labled 'Connect to Small Business Server' to connect to the SBS server. Once connected, users can use Outlook and network drives just like they were in the office using the LAN.
We also have set up Virtual Server 2005 on the SBS box (we've only got about 10 users in-house and about half of them are sometimes remote users). We have installed Server 2003 Standard in a Virtual Machine and configured it as a Terminal Server.
So staff can now connect remotely from home as well if they want.

About half of the users in our office have laptops that they can take away with them. All the laptops have Office 2007 Pro installed and use MS Outlook 2007 for their email. Office 2007 Pro is also installed on the TS.

Does it make any difference whether these laptop users connect to the server thru the VPN or use TS instead? Are there any security issues either way? Or any better efficiency? From the limited use so far, the user experience appears slightly better over the VPN rather than thru TS.

Any thoughts would be appreciated.

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VPN tunnel is supposed to be more secure as everything is encrypted. I was surprised your VPN performs better than TS to be honest because as far as I know TS only pass "key-strokes" so "should" be better perform. Is Outlook perform better in VPN as well?
Cris HannaSr IT Support EngineerCommented:
Running Terminal Server on a Domain Controller (even though its virtualized) is typically considered a security risk.  This is why you can't run SBS 2003 TS in Application Mode natively.
There's another issue with running TS on the SBS  Server 2003.  You're SBS 2003 is maxed at 4GB of RAM, So your running Vitural Server, then another Server OS and then TS Sessions.  Performance I would think would be very very poor, all the way around.
Additionally running any virtualized solution on SBS 2003 is not supported.   It may be running ok, but it is not supported.
TS is a great solution for remote users, especially if Bandwidth might be an issue.  VPN uses lots of bandwidth
If you're working with large files or databases, TS is the way to go.   But it needs to be a separate, more powerful box.

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gregmiller4itAuthor Commented:
Thanks for that.
The TS installed in a Virtual Machine is a trial. The s/w & licences are inexpensive to us because we are a not-for-profit org, and buy MS s/w thru donortec. Using a Virtual Server allows us to trial the setup without much expense. If the functionality appears to work but performance is an issue, we will purchase a new box and move the TS onto it.
gregmiller4itAuthor Commented:
We have a few users on the TS and performance now does appear slightly better than thru the VPN.
We have decided to move the TS out of the Vitual Server and onto a new box.
There looks like there is enough funds left over to splurge a bit and buy a really decent box to run the TS.
Thnaks for oyur thoughts,
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