Question : Stand-Alone Terminal Server

I have a customer that is currently running a simulated Terminal Server. They have a PC running XP Pro and a product called XpUnlimited which allows multiple RDP connections, like a TS.
There have been a few on-going problems and the customer has just asked for a 'real' server.
This is a small business with only 6 users. All users are running XP Pro. The only reason we need TS is to make MYOB run quicker in multi-user mode. MYOB is the only thing they run via TS.
There is currently no Domain Controller and therefore no Domain.

Questions:
Is it possible to install Windows 2008 Standard on a new computer and configure it as a TS? Do you need a DC to make TS work? If so, does this mean that I will need to install 2 separate servers (DC + TS)?
If it will work, is a stand-alone TS likely to be a workable/viable solution?
What functionality would be lost by having just a TS and no DC?

Regards,
Greg

Answer : Stand-Alone Terminal Server

Yes, you can have a standalone TS using local accounts for logon.  Although Microsoft recommend against Terminal Services role and Domain Controller existing on the same machine, this may be a viable option as you will get the benefits of Active Directory / Group Policy / etc on this one server.  You will need to modify User Rights Assignment for the local system policy if you choose to make the server a DC and TS.

Refer to http://technet.microsoft.com/en-us/library/cc754288(WS.10).aspx for details on configuring Terminal Services on Windows Server 2008.