Terminal Services is a feature built into Windows 2000 Server and Windows Server 2003 that allows the end user to run applications remotely on the server. Users can use a client program to connect to the server and run the applications remotely, much like pcAnywhere or GoToMyPC. However, Terminal Services supports multiple virtual desktops simultaneously, so that dozens of users can be remotely connected at the same time. Think of it as pcAnywhere on steroids.
Like Virtual Server, Terminal Services is a very broad topic, and I won't get into the details here. You can read about a few of the benefits that The Community Foundation of Sarasota County (CFSC) has realized in my introduction on the Tech Corner Home Page. Basically, it allows an organization to save money on hardware by not having to upgrade their old PC's, and save money on IT labor.
I had heard about Terminal Services since the late 1990's. However, Colin Boyle, of the Selby Botanical Gardens, is the one who turned me onto the tremendous cost savings that can be obtained through Terminal Services.
If you want to learn more about this topic, go to http://www.microsoft.com/windowsserver2003/technologies/terminalservices/default.mspx