WebDAV for file access with Server 2003 as the Terminal server behind an SBS 2003.

Ok..so just let me understand..You have a SBS 2003 server which also provides file server function.   Now you have a number of users who will be connecting via terminal services on a separate server.   And you want these TS users to be able to access files on the SBS server?    So why not just include a drive mapping to the SBS server file share.   Or add the documents on the SBS server to a document library on Sharepoint..then LAN and remote users can access files throught Sharepoint

That is what I am trying to do...have the files available for TS, LAN and remote users that are not using the TS.  We have 5 CALs for each of the remote locations for the users that are on the system most of the day with programs like QuickBooks and others.  But I still have an additional 5-10 users at each location that need to access the files simply to download an image to their local system, then they would disconnect from Sharepoint.  My issue is that I have thousands of these small jpg images that I need to make accessible through Sharepoint.  I was attempting to "open with an explorer window" so that I can drag and drop the files quickly and easily but this doesn't seem to be enabled.  I can see the option but I when I select it I get an error that the "Client does not support opening this list with windows explorer".  Someone told me that error meant that I needed to enable WebDAV for the explorer function to work.

That is where I am at.  I am definitely open for suggestions...anything that will expedite this process.

Thanks

Well, for all those usesr accessing Sharepoint, you need CALS for them as well.
If all they are doing is downloading a bunch of .jpgs...I'd setup an FTP server...like File Zilla which is not tied to Active Directory..no cals required...let them FTP the files down...

Only thing with FTP server is that the end users here, warehouse, seamstresses, etc, are not very computer literate and don't necessarily want to be computer literate.  I am trying to make this as painless as possible and I think the FTP type of interface is not going to be that user friendly.  

Also, I thought Sharepoint 3.0 did not require any CAL's.  Was I given incorrect information?

Sharepoint itself does not require CALs but it sits on Windows Server and they do have to authenicate...so it requires a cal
Is there a reason why they cant just connect directly to the sharepoint site and get what they need?   Everything I've read says WebDav to sharepoint to is a pain...haven't tried it personally...no customers where we couldn't come up with another solution