Best way to do create our new load balanced terminal services environment?

hi guys,

Currently, I have a terminal services server (call is server 1) 2008 virtual machine running on a decent HP server. It's on the hypervisor vmware esxi 4.0. The majority of the data that the users access from this server is on a mapped drive on another server.

We have also bought a blade enclosure with two blade servers with Vmware Esxi 4.1 on it. We are planning to build a new terminal services 2008 (call it server 2) on the blades. The point is to have it load balanced. So we're trying to work out whether to do one of the following:

1) Forget the server 1. Make another server 1 from scratch on the blades and the server 2 on the same blade. Load balance it.

2) Somehow transfer the server 1 from other server onto the blades. Build server 2. Load balance it.

Which one would you do?

Also, what would you use as your load balancer? (p.s - in case you do recommend, I'm not experienced with Cisco equipment, but could look into it)

Thanks
Yashy