Deploying Windows Server 2003 Terminal

Server to Host User Desktops in a Windows

Small Business Server 2003 Environment

Microsoft Corporation
Published: September 2004
Version: 2

Abstract

By adding an additional server to your Microsoft® Windows® Small Business Server 2003
network, you can enable Terminal Server. Using Terminal Server, you can host your users’
desktops. This can save your organization money by allowing you to extend the life of your
desktop hardware.

For the most up-to-date product documentation, see the Microsoft Web site at
http://go.microsoft.com/fwlink/?LinkId=33326.
 Objective ii

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Contents
Objective..................................................................................... ...........4
Upgrading from Small Business Server 2000 with Terminal Services Enabled
.......................................................................................................... .....6
Overview of Planning and Deploying Terminal Server in a Windows Small
Business Server Environment........................................................... ......7
Step 1: Plan Server and Network Resources................................... ........8
Step 2: Choose the Licensing Mode................................................... .....9
Step 3: Configure the Terminal Server Role..........................................11
Step 4: Create an Administrator Account.............................................12
Step 5: Create a Computer Account and Connect to the Network........12
Step 6: Configure Terminal Server Licensing........................................13
Step 7: Redirect My Documents Folders............................... ................15
Step 8: Install Client Applications.......................................... ...............16
Step 9: Configure Client Computers................................ .....................17
Related Links............................................................................... .........18
Deploying Windows
Server 2003 Terminal
Server to Host User
Desktops in a Windows
Small Business Server
2003 Environment
Objective
By adding an additional server to your Microsoft® Windows® Small Business Server 2003
network, you can enable Terminal Server. Using Terminal Server, you can host your users’
desktops. This can save your organization money by allowing you to extend the life of your
desktop hardware.

Note
You can also host line-of-business applications with Terminal
Server for central administration of the application and data.
For more information about hosting line-of-business
applications with Terminal Server, click Start, click Help and
Support, and then search for “Program considerations”. In
addition, see “Hosting Applications with Terminal Server” at
the Microsoft TechNet Web site
(http://go.microsoft.com/fwlink/?LinkId=19636).

After you have installed the Microsoft® Windows® Small Business Server 2003 operating
system and have completed the To Do List, you can join an additional server to your network and
configure it as a terminal server.

What is Terminal Server?

The Terminal Server component of the Microsoft Windows Server™ 2003 operating system can
deliver the Windows desktop, in addition to Windows-based applications, from a centralized
server to virtually any desktop computing device, including those that cannot run Windows.
Terminal Services transmits only the user interface of the program to the client computer. The
client computer then returns keyboard and mouse clicks to be processed by the server. Terminal
Server uses the Remote Desktop Protocol (RDP) to communicate between client and server.
 5

Client computers connecting to the terminal server can run Windows (including the Microsoft™
Windows™ CE operating system) or run on other operating systems such as the Apple Macintosh
or even UNIX (using a third-party add-on). Each user sees only their individual session, which is
managed transparently by the server operating system and is independent of any other client
session.

Terminal Services and Windows Small Business Server

You cannot run Terminal Services in Application Mode on a server that is running Windows
Small Business Server 2003. Because Terminal Services is optimized for the desktop experience,
it does not coexist well with the rest of the applications and services that Windows Small
Business Server includes. Terminal Services and Windows Small Business Server contend for the
same resources and can conflict with one another, degrading the performance of both. Also,
Windows Server 2003 and Windows Small Business Server 2003 are more secure by default than
previous versions, making coexistence with the domain-controller capacity of Small Business
Server unfeasible. For a small organization, it is recommended that one server run Windows
Small Business Server and a second server run Terminal Services. To facilitate this and to
simplify the licensing requirements for this scenario, Microsoft allows the client-access license
(CAL) for Windows Small Business Server to satisfy the CAL requirement for Windows Server
on the second server.
If you are currently using Microsoft Small Business Server 2000 and have enabled Terminal
Server in Application Server mode, use the following list to determine the Windows Small
Business Server 2003 solution that is appropriate for you:
• If you currently use Terminal Server to allow mobile users to access the network and the user
desktops, in Windows Small Business Server 2003 you can use Remote Web Workplace to
provide this functionality. For more information about Remote Web Workplace, see the
“Feature Guide for Windows Small Business Server 2003” at the Microsoft Web site
(http://go.microsoft.com/fwlink/?LinkId=31801).
• If you currently use Terminal Server to host user desktops or line-of-business applications, in
Windows Small Business Server 2003 you can add an additional server to your network. On
the additional server, install either Microsoft Windows 2000 Server or Windows
Server 2003, and enable Terminal Server. If you install Windows 2000 Server, see
“Deploying Windows 2000 Server Terminal Server to Host User Desktops in a Windows
Small Business Server 2003 Environment” at the Microsoft Web site
(http://go.microsoft.com/fwlink/?LinkId=33958).
Figure 1 illustrates your options if you are currently running Small Business Server 2000 with
Terminal Server in Application Server mode enabled.
6

Figure 1 Options for Small Business Server 2000 with Terminal Server in
Application Server mode enabled

Upgrading from Small Business

Server 2000 with Terminal
Services Enabled
If you are currently hosting line-of-business applications by running Small Business Server 2000
with Terminal Services enabled and you are planning to upgrade to Windows Small Business
Server 2003 with an additional server configured as a terminal server, then you must consider the
following licensing issues:
• If the terminal server runs Windows Server 2003, then you must have a Terminal Server
Client Access License (TS CAL) for each device or user using the Terminal Server
functionality.
• If the terminal server runs Windows 2000 Server and the client device runs Windows 2000,
Windows XP Professional, or Windows Server 2003, then you do not need a TS CAL. For
example, a device running Windows 2000 Professional can access a terminal server running
Windows 2000 Server without an associated TS CAL.
Use the following steps to prepare your server running Small Business Server 2000:
1. Upgrade your server with Service Pack 1 for Small Business Server 2000.
 7

2. Remove the Terminal Services role from the server using the following procedure.
To remove the Terminal Services role
1. Click Start, click Settings, and then click Control Panel.
2. Double-click Add/Remove Programs.
3. Click Add/Remove Windows Components to open the Windows Components Wizard.
4. Clear the Terminal Services check box, and then click Next to complete the wizard.

Note
Do not clear the Terminal Services Licensing check box.

5. Uninstall your line-of-business applications from the server. You will need to reinstall them
on the additional server.

Overview of Planning and

Deploying Terminal Server in a
Windows Small Business Server
Environment
Use the following steps to plan for and deploy Terminal Server for hosting desktops in your small
business.

Note
If you are deploying Terminal Server to host line-of-business
applications, you need to be sure your application is
compatible with Terminal Server. For more information about
hosting line-of-business applications with Terminal Server,
click Start, click Help and Support, and then search for
“Program considerations”. In addition, see “Hosting
Applications with Terminal Server” at the Microsoft TechNet
Web site (http://go.microsoft.com/fwlink/?LinkId=19636).

1. Plan server and network resources.

2. Choose the licensing mode.
3. Configure the Terminal Server role.
4. Create an administrator account.
5. Create a computer account and connect to the network.
8

6. Configure Terminal Server licensing.

7. Redirect My Documents folders.
8. Install client applications.
9. Configure client computers.

Step 1: Plan Server and Network

Resources
For optimal performance and user experience, ensure that your server and network hardware are
sufficiently upgraded and configured. The primary tasks involved in planning server and network
resources are:
1. Plan the capacity of your additional server.
2. Plan network connectivity.
3. Plan for printers.

Planning the Capacity of your Additional Server

Terminal Server capacity can vary depending on factors such as type of user, server and network
configuration, and the applications you are hosting. For adequate performance, a terminal server
requires a minimum of 128 megabytes (MB) RAM, plus additional RAM for each user running
applications on the server, depending on the type of user.
A multiple-processor configuration can maximize CPU availability. In general, processor and
memory requirements scale linearly. You can support nearly double the number of users on a
multiprocessor-capable Pentium system by doubling the number of processors and doubling the
amount of memory. For this reason, purchasing a system that supports multiple processors, even
if you initially purchase only one processor, allows you to add capacity easily as your
requirements grow.
Use the following guidelines to determine the capacity needs for your server:
• User demand. The amount of RAM and CPU that Terminal Server users consume depends
on the application features that they use, how often they use the application, and how much
work they accomplish in any unit of time.
• Application considerations. Check system requirements for each application you plan to
install on your server carefully and consider that RAM and CPU requirements increase
according to the number of user sessions expected to run simultaneously. Because a terminal
server shares executable resources among individual users, the memory requirements for
additional users running the same program are typically less than the requirements for the
first user who loads the application.
• Terminal Server licensing considerations. Terminal Services Licensing takes about a
megabyte (MB) of disk space to install.
Monitor the server load after deployment to be sure your servers have adequate capacity.
 9

Planning Network Connectivity

Terminal Server works very well over low-bandwidth connections and uses whatever IP
connection you provide. However, you can optimize both application and overall network
performance by making sure the type of connection is appropriate for the work that is done. For
example, a single user can connect over a low-bandwidth modem line and have good
performance, but it is not appropriate to share a 28.8-kilobit line among an active office of 100
people.

Note
Printing, sound, drive redirection, and user file transfer
requirements can increase bandwidth requirements and might
cause performance to drop below a level that is considered
acceptable performance for users.

Planning for Printers

When the user logs on to the terminal server, the server detects the client’s local printer and
installs the appropriate printer driver on the remote computer. If multiple printers are connected
to the client computer, Terminal Services defaults to routing all print jobs to the client computer’s
default printer. Only printers whose drivers are available on the Windows client computer appear
as available in a Remote Desktop session for local redirected printers (server-side printers are
always available). If the driver for your printer is not included with the client operating system,
you must manually install it on the server.

Step 2: Choose the Licensing

Mode
To use Terminal Server in your organization, you are required to have a Windows Server 2003
license for every terminal server that you deploy in your organization as well as Terminal Server
Client Access Licenses (CALs) for devices that access the terminal servers. For terminal servers
that are running Windows Server 2003, there are two types of Terminal Server CALs:
• Per Device
• Per User
Which CAL you choose depends on how you plan to use Terminal Server. By default, Terminal
Server is configured in Per Device mode, but it can be switched to Per User mode using the
Terminal Services Configuration tool (TSCC.msc). You can serve both license types from the
same license server. For more information about how to set your licensing mode, see "Hosting
Applications with Terminal Server" at the Microsoft TechNet Web site
(http://go.microsoft.com/fwlink/?LinkId=19636).
A Terminal Server license server on your network manages the Terminal Services CALs. A
license server stores all Terminal Server CAL tokens that have been installed for a terminal
server and tracks the license tokens that have been issued to clients. For more information about
10

Terminal Server licensing, click Start, click Help and Support, and then search for "Terminal
Server Licensing overview."

Note
Each service or application that users access from the
terminal server must be licensed appropriately. Typically each
device requires application licenses and CALs associated with
it, even if the application or service is accessed indirectly
through the terminal server. For more information, check the
product documentation, End-User License Agreement (EULA),
or any other document that specifies product usage rights.

Per Device Licensing Mode

A Per Device CAL provides each client computer the right to access a terminal server that is
running Windows Server 2003. The Per Device CAL is stored locally and presented to the
terminal server each time the client computer connects to the server.
Per Device licensing is a good choice for:
• Hosting a user’s primary desktop for devices the customer owns or controls.
• Thin clients or computers that connect to a terminal server for a large percentage of the
working day.
This type of licensing is a poor choice if you do not control the device accessing the server, for
example, computers in an Internet café, or if you have a business partner who connects to your
terminal server from outside your network.

Per User Licensing Mode

In Per User licensing mode you must have one license for every user. With Per User licensing,
one user can access a terminal server from an unlimited number of devices and only needs one
CAL rather than a CAL for each device.
Per User licensing is a good choice in the following situations:
• Providing access for roaming users.
• Providing access for users who use more than one computer, for example, a portable and a
desktop computer.
• Providing ease of management for organizations that track access to the network by user,
rather than by computer.
In general, if your organization has more computers than users, Per User licensing might be a
cost-effective way to deploy Terminal Server because you only pay for the user to access
Terminal Server, rather than paying for every device from which the user accesses Terminal
Server. Check the EULA for the applications that you plan to host to determine if they support
per user licensing.
 11

Step 3: Configure the Terminal

Server Role
On the server running Windows Server 2003 that you plan to use as an additional server,
configure the Terminal Server role. For more information about Terminal Server, on the server
running Windows Server 2003, click Start, click Help and Support, and see the Terminal
Services topics under Software Deployment.

Important
Because Terminal Services supports multiple users, it is
strongly recommended that you use the Windows Server 2003
version of the NTFS file system as the only file system on the
server, rather than file allocation table (FAT). FAT does not
offer any user or directory security, whereas with NTFS you
can limit subdirectories to certain users or groups of users.
This is important in a multi-user system such as Terminal
Services. Without the security that NTFS provides, any user
has access to every directory and file on the terminal server.
For more information about file systems, see “Designing and
Deploying File Servers” at the Microsoft TechNet Web site
(http://go.microsoft.com/fwlink/?LinkId=19637).

To install Terminal Server

1. Log on to the additional server using the local administrator account.
2. Verify that the Windows Time service is configured and running, and that the time is correct.
3. Click Start, click Manage Your Server, and then click Add or remove a role. The
Configure Your Server Wizard starts.
4. Click OK on the Preliminary Steps page.
5. On the Server Role page, select the Terminal server check box, and then click Next.

Note
If a page appears that recommends a configuration for a first
server on the domain, click Custom Configuration to
configure the server with the Terminal Server role.

6. Click Next on the Summary of Selections page to begin the configuration. Your computer
will restart as part of the configuration.
12

Step 4: Create an Administrator

Account
Next, create a domain administrator account in order to manage your additional server.

Important
In order to administer the additional server, you must log on
using a domain administrator account that was created with
the Add User Wizard. A domain administrator account that
was created using any other method does not work for
administering an additional computer on a Windows Small
Business Server network. If you have already created a
domain administrator account using the Add User Wizard, you
can skip this step.

To create an administrator account for the additional server

1. Log on to the computer running Windows Small Business Server 2003 using the local
administrator account.
2. Click Start, and then click Server Management.
3. In the console tree, click Users.
4. In the details pane, click Add a User.
5. The Add User Wizard starts.
• On the Template Selection page, in the Templates dialog box, click Administrator
Template.
• On the Set Up Client Computer page, click Do not set up a computer.
• On the Completing the Add User Wizard page, click Finish.

Step 5: Create a Computer

Account and Connect to the
Network
Next, create an account for your additional server on the Windows Small Business Server
network, and then join the server to the network.
To create a computer account
1. Log on to the computer running Windows Small Business Server 2003 using the built-in
Administrator account.
 13

2. Click Start, and then click Server Management.

3. In the console tree, click Server Computers.
4. In the details pane, click Set Up Server Computers. The Set Up Server Wizard starts.
5. Follow the instructions in the wizard for creating a server computer.
To connect the terminal server to the network
1. On the new server, log on using the built-in Administrator account.
2. In Internet Explorer, go to http://ServerName/connectcomputer, and then click Connect to
the network now.

Note
Internet Explorer is unrestricted by default for Terminal Server.
However, if you are unable to get to the site or an Internet
Explorer message appears indicating that the Enhanced
Security Configuration is enabled, in Internet Explorer, on the
Tools menu, click Internet Options. On the Security tab,
click Trusted sites, and then click Sites. In the Trusted
Sites dialog box, add http:// ServerName to the list of trusted
sites. Ensure that the Require server verification (https:)
for all sites in this zone check box is clear.

3. Follow the instructions in the wizard to connect this computer to the network. Use the
administrator user name and password that you created when you ran the Add User Wizard.

Step 6: Configure Terminal Server

Licensing
After you have joined the additional server to the network, configure the server with Terminal
Server licensing. For information about adding an additional server, click Start, click Help and
Support, and then search for "Terminal Server Licensing."

Note
If you are upgrading from Small Business Server 2000 with
Terminal Services enabled, keep terminal services licensing on
the computer running Windows Small Business Server 2003.

To configure Terminal Server Licensing

1. Click Start, click Control Panel, and then click Add or Remove Programs.
2. Click Add/Remove Windows Components.
3. In the Components dialog box, click Terminal Server Licensing, and then click Next.
14

4. On the Terminal Server Licensing Setup page, click Next to accept the default on that
page.

Important
You might be asked for the Windows Server 2003 product CD
at this step. Files from the CD might be needed to install
Terminal Server Licensing.

5. Provide the file system location where the license server database should be installed on the
Terminal Server license server, click Next, and then click Finish. The default location for the
license server database is systemroot\System32\LServer.

Activating the License Server

After a Terminal Server license server is activated, it becomes the repository for Terminal Server
client licenses. A Terminal Server license server can issue temporary licenses for clients that
allow use of terminal servers for up to 120 days from the date of the first client logon. After this
evaluation period ends, a terminal server can no longer allow clients to connect unless it locates a
Terminal Server license server to issue client licenses. Licensing wizard properties, such as
activation method and company information, set during the activation process, can be changed
later.
To activate the license server
1. Click Start, click Control Panel, click Administrative Tools, and then click Terminal
Server Licensing.
2. In the console tree, right-click the Terminal Server license server you want to activate, and
then click Activate Server to start the Terminal Server License Server Activation Wizard.
3. In Activation method, select Automatic connection (recommended), and then click Next.
Follow the instructions in the wizard.

Adding Client Licenses to the License Server

You must purchase a client access license for each client computer that connects to the terminal
server and install them on the license server for users to be able to use the terminal server. For
more information about Terminal Server licensing, click Start, click Help and Support, and
then search for "Terminal Server Licensing."

Note
By default Terminal Server licensing is set to Per Device mode.
To change to Per User mode, click Start, click Control Panel,
and then click Administrative Tools, and then click
Terminal Services Configuration. In the console tree, click
Server Settings. In the details pane, double-click Licensing.
In the Licensing Mode dialog box, click Per User from the
drop-down list box, and then click OK.
 15

To install client license key packs

1. On the terminal server, click Start, click Control Panel, click Administrative Tools, and
then click Terminal Server Licensing.
2. Verify that the installation method for the Terminal Server license server is set to Automatic
by right-clicking the Terminal Server license server for which you want to install key packs,
and then clicking Properties. On the Installation Method tab, change the installation
method if necessary.
3. In the console tree, right-click the Terminal Server license server for which you want to
install key packs, click Install Licenses to start the Terminal Server CAL Installation
Wizard, and then click Next.
The previous steps are not necessary if the Terminal Server CAL Installation Wizard is
already started.
4. In Program and Client License Information, provide the required information for your
licensing program to receive your key packs, and then click Next.
The Microsoft Clearinghouse processes your request, and installs the encrypted client license
key pack on your Terminal Server license server.
5. Click Finish to complete the process.
The Terminal Server license server can now issue licenses to clients that connect to a
Terminal server.

Step 7: Redirect My Documents

Folders
It is recommended that you redirect users’ My Documents folders to the server running Windows
Small Business Server 2003 and apply volume quotas to the folders. By default, users’ My
Documents folders are saved with the user profiles on the terminal server. If you use My
Documents Redirection and the backup feature of Small Business Server 2003, your users’ data
will be backed up along with the rest of the server. For information about redirecting users’ My
Documents folders from the terminal server to the Windows Small Business Server 2003, click
Start, click Help and Support, and then search for "Folder redirection."

Note
Enabling My Documents redirection applies to all users in the
domain.

To ensure that users’ My Documents folders synchronize with the server, tell the users to log off
from their terminal server sessions rather than simply close the session.
16

Step 8: Install Client Applications

You can use the client applications on the computer running Windows Small Business
Server 2003 and install them on the terminal server. You can also install other client applications
on the terminal server. For more information about installing and running applications with
Terminal Server, click Start, click Help and Support, and the search for "Terminal Server." For
more information about installing Microsoft Office 2003 in a Terminal Server environment, see
the whitepaper "Deploying Office 2003 in a Windows Terminal Services Environment" at the
Microsoft Web site (http://go.microsoft.com/fwlink/?LinkId=24921).

Installing Outlook
You can install Microsoft® Office Outlook® 2003 on the terminal server from the server running
Small Business Server 2003.
To install Outlook

Note
Before beginning this procedure, ensure that the
Applauncher.exe has completed running. To check the status
of Applauncher.exe, press CTRL+ALT+DELETE, and then click
Task Manager. On the Processes tab, ensure that
Applauncher.exe does not appear.

1. On the additional server, log on using the domain administrator account.

2. Click Start, click Run, and then type \\ServerName.
3. Double-click ClientApps, and then double-click outlook2003.
4. Double-click Setup.exe, and then follow the Setup instructions.
5. To close Outlook Setup after installation, click Next, and then click Finish. Ensure that you
close the wizard that launches along with Setup.

Note
You do not need to configure Outlook for each Terminal Server
user. When the user logs on for the first time, Client Setup
automatically configures Outlook.
For Terminal Server users, Cached Exchange Mode is not
available.

Installing Internet Explorer

You do not need to install Internet Explorer on the terminal server; the correct version of Internet
Explorer is included with Windows Server 2003. The Favorites menu and connection settings are
configured by Client Setup. Some links on the Favorites menu point to items that require the
installation of Microsoft ActiveX® controls or certificates. To prepare Internet Explorer for these
links, use the following procedure.
 17

Configuring Fax for Terminal Server Users

You can configure the server running Windows Small Business Server 2003 as the fax server for
Terminal Server users by installing the Fax Service on the server running Windows Small
Business Server 2003. For more information about hosting Fax Services on the additional server,
click Start, click Help and Support, and then search for "Using Fax."
To configure Fax Services for Terminal Server users, you need to configure the terminal server
and each client computer that will use the service. Use the following procedure to configure the
terminal server for using fax. When you are configuring the client computers to use the Terminal
Server, you will also need to configure the client computers to use fax.
To configure the terminal server for fax
1. From the terminal server, click Start, click Control Panel, and then click Add or Remove
Programs.
2. Click Add/Remove Windows Components.
3. Select the Fax Services check box, and then click Next.
4. Click Do not share this printer, and then click Next.

Note
You may be prompted for your Windows Server 2003
operating system disc.

5. Click Finish.

Step 9: Configure Client

Computers
To configure the client computers to access the terminal server, you must install the Remote
Desktop Connection on each client computer. After you have installed the Remote Desktop
Connection, you can configure the client computers for Fax Services.
To install Remote Desktop Connection on client computers

Note
The Remote Desktop Connection tool is installed by default
when you install Windows Server 2003, Windows XP, and most
versions of Windows CE. On earlier versions of Windows and
Pocket PC, you have to manually install Remote Desktop.

1. From the client computer, click Start, click Run, and then type:
\\ServerName\clientapps
18

2. Click tsclient.
3. Double-click the Win32 folder, and then double-click Setup.exe.
4. Complete the Remote Desktop Connection - InstallSheild Wizard.
To configure client computers to use Fax Services

Note
When the user logs on to the terminal server, the server
detects the client’s local printer and installs the appropriate
printer driver on the remote computer.

1. From each client computer, click Start, click Programs, click Accessories, click
Communications, click Remote Desktop Connection, and then log on to the terminal
server using the Remote Desktop Connection.
2. Click Start, click Printers and Faxes, and then double-click Add a printer. The Add
Printer wizard starts.
3. Click Next.
4. Click A network printer, or a printer attached to another computer, and then click Next.
5. Click Find a printer in the directory, and then click Next .
6. In the Find Printers dialog box, click Find Now.
In the search results list, a printer named Fax should appear. Select the printer named Fax,
and then click OK.

Note
You may be prompted for your client operating system media.

7. Click No when asked if you want to set this printer as the default printer, and then click
Finish.

Related Links
See the following resources for further information:
• For information about Terminal Services, see "Terminal Services" at the Microsoft Web site
(http://go.microsoft.com/fwlink/?LinkId=14341).
• For more information about deploying Terminal Server, see "Hosting Applications with
Terminal Server" at the Microsoft TechNet Web site
(http://go.microsoft.com/fwlink/?LinkId=19636).
For the latest information about Windows Small Business Server 2003, see the Windows Small
Business Server Web site at http://go.microsoft.com/fwlink/?LinkId=16918.
19